Jameson is seeking a loan with a simple interest rate of 3% per year. If he wants to borrow 8,000 then how much will he be charged in interest after 4 years

Question

Mathematics

Jaelynn Kline

10 October, 18:57

Jameson is seeking a loan with a simple interest rate of 3% per year. If he wants to borrow 8,000 then how much will he be charged in interest after 4 years

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Answers (1)

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Alexia Bond · Answer 1

Simple interest formula

A=P (1+rt)

Where,

A=Accrued amount, P = Amount borrowed, r=Interest rate per year, t = time in years.

Interest accrued = A-p = P (1+rt) - P = P{ (1+rt) - 1} = 8,000 { (1+0.03*4) - 1} = $960