Question

Andrew borrowed $700 from the bank to start a pressure washing business. The bank charged a simple interest rate of 7% per year. If it takes Andrew 3 years to pay back the loan, how much interest will he pay?

Answer 1

Simple interest=(Principal×Rate×Time)/100

Principal=$700, Rate=7%, & Time=3 years

→S.I. = (700×7×3)/100 = 147

Andrew has to pay a interest of $147.

Answer 2

• $147

Explanation:

Given:

• Loan amount = $700
• Interest rate = 7% simple
• Time = 3 years

Interest amount:

• $700*3*0.07 = $147