Question

If the person borrowed $3000 for 3 years at a rate of 2%, how much interest will they owe for the loan

Answer 1

In this case were going to solve the question using "simple interst", so since were looking for the interest it will be I= PxRxT (I stands for "interest", P stands for "principal", R stands for "rate" and T stands for "time")

so P is $3000

R is 2%

and T is 3 years

so we'll have to turn our rate into a decimal which is 2% = .02

now to start the problem:

I= (3000)(.02)(3)       (means 3000 x .02 x 3)

I= $180  is your answer