bruce takes out a personal loan of $1,000 to go on a trip to florida. his loan has an annual simple interest…

bruce takes out a personal loan of $1,000 to go on a trip to florida. his loan has an annual simple interest rate of 10%. when you calculate bruces debt, be sure to use the formula for simple interest. $a=(p)(r)(t)$ bruce borrowed $1,000 for his trip. if bruce waits for five years to begin paying back his loan, how much will he owe? $1,200 $1,300 $1,500 $1,800
Answer
Explanation:
Step1: Identify values
$P = 1000$ (principal amount), $r=0.1$ (10% interest rate as a decimal), $t = 5$ (number of years)
Step2: Calculate simple - interest
$A=(P)(r)(t)=1000\times0.1\times5 = 500$
Step3: Calculate total amount owed
The total amount $A_{total}=P + A$. Substitute $P = 1000$ and $A = 500$ into the formula. $A_{total}=1000 + 500=1500$
Answer:
$1,500$