Question

has taken out a loan for $9,800. The bank offered him a simple interest rate of 6% over a three-year period. If Ron pays the loan back in three years, what will be the total amount paid to the bank?

Answer 1

Answer:

The total amount that would be paid to bank is $11,564.

Explanation:

I = PRT/100

I is the simple interest on the loan

P is the amount of loan taken = $9,800

R is the simple interest rate = 6%

T is the duration for the loan to be paid with interest = 3 years

I = 9,800×6×3/100 = $1,764

Total amount to be paid = P + I = $9,800 + $1,764 = $11,564