Question

max borrowed $20,000 so he could buy a car. if the loan has a 9% simple interest rate, and he pays it off over 3 years, how much interest will max pay? hint: i = prt

Explanation:

Step1: Identify values

$P = 20000$, $R=0.09$, $T = 3$

Step2: Apply simple - interest formula

$I=PRT$
$I=20000\times0.09\times3$
$I = 20000\times0.27$
$I = 5400$

Answer:

$5400$