autumnwillams123
contestada

Background Info: Tom needs money to pay for education expenses, and he finds a personal loan. The loan would require him to repay the principal in one lump sum after three years.

Loan Option A

Principal: $9,000

Type of Interest: Simple Interest

Interest Rate: 11%

Rate of Accrual: Once per year

Use the formula for simple interest.

A=(P)(r)(t)

Remember, A refers to the interest accrued.

Calculate the total interest Tom would pay, in addition to paying back his $9,000 in principal.

Respuesta :

pstnonsonjoku

The total simple interest that accrues is $2970 while the total amount to be repaid is $11970

What is interest?

The interest is the money that accrues on the principal. It is the money that is paid on top of the principal.

We have the principal as  $9,000, rate as 11% and total time as 3 years. It then follows that the interest paid is; A = 9000 * 0.11 * 3 = $2970

Therefore, the total amount to be repaid =  $9,000 + $2970 = $11970

Learn more about simple interest:https://brainly.com/question/22621039?

#SPJ1

Otras preguntas