Question

Simple interest is 3% each year and borrows $8,000 how much will they be charged in interest after 4 years

Answer 1

Answer: $960

Step-by-step explanation:

Simple interest is calculated by Principal x rate x time

Given Principal as $8000, rate as 3% = 3/100 = 0.03

Time = 4years

Slot the values into the formula

8,000 x 0.03 x 4

=$960

I hope this helps.

Answer 2

Answer: Interest charged after 4 years would be $960.

Step-by-step explanation: The formular used in calculating the simple interest is given as

Interest = PRT/100

Where P = Principal or amount borrowed at the beginning

R = rate of interest to be charged

T = time or number of years interest is being charged

So, to calculate the interest that would be charged after 4 years, we can now express the formular more properly as

Interest = (8000 x 3 x 4)/100

(Note that since the rate is expressed as a percentage, the formular may also be written as)

Interest = 8000 x 0.03 x 4

Interest = 32000 x 0.03

Interest = 960

Hence, the interest that would be charged after 4 years equals $960