Question

Thang decided to borrow ​$90 from his local bank to help pay for a car. His loan was for 3 years at a simple interest rate of 40​%. How much interest will Thang​ pay?

Answer 1

Explanation:

P = 90

r = 40% = 40/100 = 0.4

t = 3 years

It is not clear to me what this means. Is the 40% for each year for 3 years or is the interest rate = 40% period. I know that in some of the poorer countries, this is not an unusual amount to pay for each year he holds the loan.

I will take it as 40% for each year for 3 years.

i = prt = 90 * 0.4 * 3

i = 108