Question

Jameson is seeking a loan with a simple interest rate of 3% per year. If he wants to borrow 8,000 then how much will he be charged in interest after 4 years

Answer 1

Simple interest formula
A=P(1+rt)
Where,
A=Accrued amount, P= Amount borrowed, r=Interest rate per year, t= time in years.

Interest accrued = A-p = P(1+rt)- P = P{(1+rt)-1} = 8,000 {(1+0.03*4)-1} = $960