Question

You borrow $1,000 on a simple interest loan. You pay an annual rate of 3.5%. You will take 3 years to pay back the loan. How much interest will you pay?

Answer 1

Answer:

  $105

Step-by-step explanation:

The appropriate formula for the simple interest is ...

  I = Prt

for principal P borrowed at rate r for time period t.

Filling in the given values, we find the interest to be ...

  I = $1000×0.035×3 = $105

You will pay $105 in interest.