Answer:
Jessica will repay a total of $12,700, including $2,700 in interest.
Explanation:
We can start by using the simple interest formula:
I = P * r * t
Where I is the interest, P is the principal (the amount borrowed), r is the annual interest rate expressed as a decimal, and t is the time in years.
In this case, P is the amount borrowed, r is 0.09 (9% as a decimal), and t is 3 years. We can assume that Jessica will pay off the entire loan (including principal and interest) at the end of the 3rd year, so the total amount she will repay is:
Total = P + I
To find the interest, we need to know the principal. Let's assume that Jessica borrowed $10,000. Then:
I = P * r * t
I = $10,000 * 0.09 * 3
I = $2,700
So Jessica will pay $2,700 in interest over the 3-year loan. The total amount she will repay is:
Total = P + I
Total = $10,000 + $2,700
Total = $12,700
Therefore, Jessica will repay a total of $12,700, including $2,700 in interest.
Simple interest formula:
Simple interest is a type of interest that is calculated only on the principal amount of a loan or investment, and not on any interest earned or accumulated from previous periods. The formula for calculating simple interest is:
I = P * r * t
where:
I is the amount of interest paid or earned
P is the principal amount of the loan or investment
r is the annual interest rate as a decimal
t is the time period (in years) that the loan or investment is for
So, to calculate the interest paid on a loan, you would multiply the principal amount by the interest rate (as a decimal) and the time period. For example, if you borrow $10,000 for 3 years at an annual simple interest rate of 5%, the interest paid would be:
I = $10,000 * 0.05 * 3 = $1,500
This means that you would have to repay the principal amount of $10,000 plus $1,500 in interest, for a total repayment amount of $11,500.
Hope this helped! I'm sorry if it didn't. If you need more help ask me! :]