Question

If i borrow $300 at a simple interest rate of 6 percent how much interest will you pay if you will pay if you repay in 3 years? What is the total amount you will have paid

Answer 1

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount borrowed.

P represents the principal or amount borrowed

R represents interest rate

T represents the duration in years.

From the information given

P = 300

R = 6%

T = 3 years

I = (300 × 6 × 4)/100 = $72

The total punt that you would have paid after 3'years is

300 + 72 = $372