Question

Taylor plans to borrow $4500 from the bank to purchase a used vehicle if he borrows the money by the rate of 4% simple interest for two years what is the amount of interest he will have to pay

Answer 1

$360

Explanation:

Given

Amount borrowed P = $4500 (principal)

Time T = 2 years

Rate R = 4

Simple interest formula is expressed as;

SI = PRT/100

Substitute the given parameters into the formula

SI = 4500×2×4/100

SI = 45×2×4

SI = 45×8

SI = $360

The amount of interest he will have to pay is $360