Question

A bank offers an annual simple interest rate of 6% on home improvement loans. How much would Tobias OWE IN ALL if he BORROWED $12,000 over a period of 3 years?

Answer 1

Answer: $14160

Explanation:

Simple interest would be calculated as:

= PRT/100

where,

P = Principal = $12000

R = Rate = 6%

T = Time = 3 years

Simple interest = ($12000 × 6 × 3)/100

= $216000/100

= $2160

The amount that Tobias owe in all would be:

= $12000 + $2160

= $14160