Answer:
$600
Step-by-step explanation:
Simple Interest Rate: A = P(1 + RT)
A Total Value
P Principle
R Rate
T Time
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<h2>Step 1: Insert Values </h2><h2> </h2>Let's plug the info we have into the formula:
A = 4000(1 + 0.05(3))
A = 4000 + 4000(0.15)
A = 4000 + 600
A = 4600
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<h2>Step 2: Finding the Interest</h2><h2 />So the total value she ends up with $4600, but we want to find the extra value, or interest, she has to pay.
To find this we subtract the principle from the new value:
4600 - 4000 = 600
Liz has to pay $600.
-Chetan K