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15 votes
15 votes
Dominick borrowed $6,000 from a credit union at 9% simple interest for 30 months. What is the total amount of interest Dominick will pay throughout the life of the loan?$1350$1325$1300$1250None of these choices are correct.

User Vidya Ganesh
by
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1 Answer

18 votes
18 votes

$1350

Step-by-step explanation

the simple interest formula is given by:


\begin{gathered} I=\text{P}\cdot\text{R}\cdot\text{T} \\ \text{where} \\ I\text{ is the interest} \\ P\text{ is the principal amount } \\ r\text{ is the interest rate} \\ \text{and t is the time ( in years)} \end{gathered}

Step 1

convet the time from months to years

use:


1\text{ year}\rightarrow12\text{ months}

so


30\text{ months(}\frac{1\text{ year}}{12\text{ months}}\text{)=2.5 years}

Step 2

Let

time=2.5 years

Interest= I

interest rate(r)=9%=0.09

Principal(p)=6000

Now, replace.


\begin{gathered} I=\text{P}\cdot\text{R}\cdot\text{T} \\ I=\text{\$ 6000 }\cdot0.09\cdot2.5 \\ I=1350 \end{gathered}

therefore the answer is $1350

I hope this helps you

User Newmathwhodis
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