Question

Find the total amount due for a simple interest loan of $9,000 at 3% for 6 years.

            Discuss how the total amount of a simple interest loan will change if the rate was cut in half?

Answer 1

ans: First, converting R percent to r a decimal
r = R/100 = 3%/100 = 0.03 per year.

no of year=6
formulae:A=P(1+rt) where p=principal amount=9000, R=rate of interest=3%, T=time=6 yrs
Solving our equation:
A = 9000(1 + (0.03 × 6)) = 10620
A = $10,620.00

The total amount accrued, principal plus interest, from simple interest on a principal of $9,000.00 at a rate of 3% per year for 6 years is $10,620.00.

if the rate was 1.5%

then,First, converting R percent to r a decimal
r = R/100 = 1.5%/100 = 0.015 per year.

Solving our equation:
A = 9000(1 + (0.015 × 6)) = 9810
A = $9,810.00

The total amount accrued, principal plus interest, from simple interest on a principal of $9,000.00 at a rate of 1.5% per year for 6 years is $9,810.0