Answer: i = $90 ; Total amount = $690
After 3 years, Ariane is charged $ 90.00 in interest.
She pays a total amount of $ 690.
As in the case before. It is simple because it is a simple interes thata applies straight to the Loan ammount tiumes the period of time.
Explanation:
I will use my last answer and change the numbers.
Is better if you know that there is simple interest and compound interest.
Simple interest is applied just to the principal loan.
Compound interest is applied to the principle and the period interest.
Because the question is just for the Simple interest we can use the formula to find the interest:
P*i*n
For the total amount returned (paid back) would be: P + P*i*n
Where P is the principal (loan) = $ 600
i is the simple interest rate: 5%
n is the Period of time= 3 years.
Just Replace.
Therefore the simple interest is: P*i*n = $600*5%*3 = $90
The total amount Payed back is= P+P*i*n = $600 + $600*5%*3 = $ 690
:)