Problema Solution
Thang decided to borrow $9000 from his local bank to help pay for a car. His loan was for 3 years at a simple interest rate of 5%. How much interest will thang pay?
Answer provided by our tutors
interest = principal * rate * time
the loan is for a period of 3 years, so we assume time = 1 unit since the problem statement does not specify that this is annual interest
9000 * 0.05 = 450
Thang will pay $450 in simple interest for a loan based on a 3-year term