Question

Thang decided to borrow $2000 from his local bank to help pay for a car. His loan was for 3 years at a simple interest rate of 9% How much interest will Thang

pay?

Answer 1

Thang will pay $540 in interest over the course of his 3-year loan.

Step-by-step explanation:

To calculate the interest Thang will pay on his loan, we can use the formula:

Interest = P * r * t

Where:

• P is the principal amount borrowed, which in this case is $2000
• r is the interest rate per year, expressed as a decimal (in this case 0.09)
• t is the time period in years (in this case 3 years)

Plugging in the values into the formula, we get:

Interest = 2000 * 0.09 * 3 = $540

Therefore, Thang will pay $540 in interest over the course of his 3-year loan.