Question

To buy a car, Danny borrowed $16000 for 3 years at an annual simple interest rate of 9%. if it takes him 3 full years to pay off the loan, how much interest will he pay? Show your work.

Answer 1

he would pay $4,320 in interest for borrowing $16000

Answer 2

$4,320

Explanation:

I equals PRT. I is the interest. P is the principal, amount borrowed. R is the rate, percent. T is the amount of time in years. Principal in this is 16,000. Rate is 9%, or 0.09. Time is 3 years. So 16,000 times 0.09 times 3 equals 4,320. That is the interest.