Question

1)A person borrows money from a friend and they decide to use a simple interest formula. where I is the interest in dollars, P is the principle (original money loaned) in dollars, R is the interest rate, and T is the time in years. If the person borrowed $3000 for 3 years at a rate of 2%, how much interest will they owe for the loan?

A)$30


B)$180


C)$300


D)$360

Answer 1

Option b is right

Explanation:

Given that a person borrows money from a friend and they decide to use a simple interest formula. where I is the interest in dollars, P is the principle (original money loaned) in dollars, R is the interest rate, and T is the time in years.

Here we have simple interest formula as

`PRT/100`

substitute P = 3000, R = 2% and T = 3

to get

Simple interest for 3000 $ at 2% for 3 years

=
`(3000(2)(3))/(100) =180`

Answer is 180 dollars

Option b is right