Question

Keshon gets a loan for $4,000 to buy a car. It will take him 3 years to pay off the loan He will be charged 6.5% simple interest. How much interest will he pay over 3 years

Answer 1

He will pay 780$ after 3 years

Answer 2

We can use the interest formula:

Let i = interest.

Let p = principal

Let r = interest rate

Let t = time.

I = p × r × t. Plug in our numbers

6.5% = 0.065

I = $4,000 × 0.065 × 3 = $780.

He will pay $780 in interest after 3 years.