Answer:
He will have to pay $1,650 in interest at the end of 3 years.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After t years, the total amount of money is:
[tex]T = E + P[/tex]
Anvi borrowed $5,000 from a bank at a flat interest rate of 11% per year for a 3-year period.
This means that [tex]P = 5000, I = 0.11, t = 3[/tex]
How much interest does she have to pay the bank at the end of 3 years?
[tex]E = P*I*t = 5000*0.11*3 = 1650[/tex]
He will have to pay $1,650 in interest at the end of 3 years.
