background info: tom needs money to pay for education expenses, and he finds a personal loan. the loan would…

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
Answer
Explanation:
Step1: Identify values
$P = 9000$, $r=0.11$, $t = 3$
Step2: Apply simple - interest formula
$A=(P)(r)(t)=9000\times0.11\times3$ $A = 9000\times0.33$ $A=2970$
Answer:
$2,970$