Question

Dante wants to buy a new sound system for his room. He borrows $500 from his older sister and agrees to pay her 6% simple annual interest. How much interest will Dante owe at the end of 3 years?

Answer 1

0.18 6%*3= 0.18 is the answer 

Answer 2

Answer: $90

Explanation:

The formula we use to find the simple interest is given by :-

`I=Prt`, where P is the principal amount ,r is the rate of interest ( in decimal) and t is the time period ( in years).

Given : Dante borrows $500 from his older sister and agrees to pay her 6% simple annual interest.

i.e. P=$500 ; r=6%=0.06

Now, the simple interest Dante will owe at the end of 3 years will be :-

`I=500*0.06*3=90`

Hence, Dante will owe $90 as interest at the end of 3 years.