Question

Vincent borrowed $300 for a new TV. If he promised to repay the loan at a simple annual interest rate of 2%, how much will he owe in total at the end of 3 years?

Answer 1

Hi there
The formula is
A=p (1+rt)
A ?
P 300
R 0.02
T 3 years
So
A=300×(1+0.02×3)
A=318

Hope it helps

Answer 2

Vincent will owe $318.

Explanation:

Simple interest is given by :

`I=p* r* t`

Here , p = 300

r = 2% or 0.02

t = 3

So, interest will be =
`300*0.02*3`

= $18

So, total amount owed will be =
`300+18=318` dollars

Therefore, Vincent will owe $318.