Question

Jose borrowed $20,000 to buy a new speed boat. The interest rate on his loan is 5%. He will pay it back in 3 years. What will be the total amount he'll pay for the boat, including interest?

Answer 1

jose take 20000 $ on 5% interest rate for 3 years

formula

interest=principle amount*rate*time

interest=20000*5%*3

int=20000*5/100*3

int=200*5*3

int=3000

principle+intrest=total he has to pay

20000+3000=total he has to pay

Answer=23000$ he has to pay

Answer 2

I=Prt is a simple interest formula

i=(20000)(.05)(3)

i=3000

3000+20000=23000

Explanation: