Question

Jameson is seeking a loan with a simple interest rate of 3% per year. If he wants to borrow $8000, then how much will he be charged in interest after 4 years?

Answer 1

Answer:

$960

Step-by-step explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

$I=Prt$

I = interest amount

P = principal amount

r = interest rate (decimal form)

t = time

The first step is to change 3% into a decimal:

3% -> $\frac{3}{100}$ -> 0.03

Now, lets plug in the values into the equation:

$I=8,000(0.03)(4)$

$I=960$

Jameson will be charged $960 of interest after 4 years.