Question

In three years, when he is discharged from the Air Force, Steve wants to buy an 8,000 power boat.

Answer 1

Steve will get $11360 with the process of simple interest.

what is simple interest?

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.

Rate of interest = 14%

principal + interest = $8000

Time = 3 years

Simple interest

$=\frac{8000 \times 3 \times 14}{100}\\=3360$

Now principal + interest = 8000+3360 = 11360

Therefore, Steve will get $11360.

To learn more about simple interest from the given link

brainly.com/question/25793394

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