Question

Jameson is seeking a loan with a simple interest rate of 3% per year. If he wants to borrow $8000, then how much will he be charged in interest after 4 years?

Answer 1

$960

Explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

`I=Prt`

I = interest amount

P = principal amount

r = interest rate (decimal form)

t = time

The first step is to change 3% into a decimal:

3% ->
`(3)/(100)` -> 0.03

Now, lets plug in the values into the equation:

`I=8,000(0.03)(4)`

`I=960`

Jameson will be charged $960 of interest after 4 years.