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28 October, 14:14

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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  1. 28 October, 14:31
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    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
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