Question

Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual simple interest rate of 10%. When you calculate Bruce’s debt, be sure to use the formula for simple interest. A = (P)(r)(t) Bruce borrowed $1,000 for his trip. If Bruce waits for five years to begin paying back his loan, how much will he owe? $1,200 $1,300 $1,500 $1,800

Answer 1

C. 1500

Note, this isn't answer, I just looked up the question.

Answer 2

The correct answer is option C,
`1500\\`

Explanation:

Simple Interest would be

`SI = (P) (r) ( t) \\= (1,000) ( (10)/(100)) (5)\\ = 500\\`

Amount

`A = P + SI\\= 1000 + 500\\= 1500\\`