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Toby takes out a loan of £400, which gathers interest rate of 3% per year. How much interest will he have to pay after his first year

User Spajdo
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1 Answer

6 votes

Answer:

£12

Explanation:

To calculate the interest, we need to multiply the loan amount (£400) by the interest rate (3% or 0.03):

Interest = £400 * 0.03 = £<<400*0.03=12>>12

So, Toby will have to pay £12 in interest after his first year.

User Arunkjn
by
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