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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. $970 $1,970 $2,970 $3,970

Respuesta :

Answer: The total interest Tom would pay in addition to paying back his $9000 in principal is (c) $2,970.

The simple interest formula gives us the interest that is due on the principal over a given period of time at a given rate of interest.

The Simple Interest Formula is:

[tex]\mathbf{A = (P)(r)(t)}[/tex]

where

A = interest accrued on the principal

P = is the principal i.e. amount that is loaned or borrowed

r = interest rate

t = number of years interest is calculated.

Substituting the values in the formula we get,

[tex]A = (9000)(0.11)(3)[/tex]

[tex]\mathbf{A = 2,970}[/tex]

The total interest Tom would pay in addition to paying back his $9000 in principal is (c) $2,970.

The simple interest formula calculates the amount of interest due on the principal over a specified time period at a specified rate of interest.

The Simple Interest Formula is:

A = (P)(r)(t)

where

  • A = interest accrued on the principal
  • P = is the principal
  • r = interest rate
  • t = number of years interest is calculated.

Substituting the values in the formula we get,

A = (9000)(0.11)(3)

A = 2,970

For more information about Principal and amount refer to the link:

https://brainly.com/question/4478897?referrer=searchResults

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