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You have loaned a friend $300 for 3 years. Your friend has agreed to pay back the loan with 20% annual simple interest. After 3 years, how much will your friend pay you back altogether (including both the principal and interest)?Give your answer to the nearest dollar. For example, if you calculate $33.27, write 33.

Respuesta :

Solution:

Given:

[tex]\begin{gathered} P=\text{ \$}300 \\ T=3years \\ R=20\text{ \%} \end{gathered}[/tex]

Using the simple interest formula;

[tex]\begin{gathered} I=\frac{PTR}{100} \\ I=\frac{300\times3\times20}{100} \\ I=\text{ \$}180 \end{gathered}[/tex]

Hence, the amount to be paid back altogether is;

[tex]\begin{gathered} A=P+I \\ A=300+180 \\ A=\text{ \$}480 \end{gathered}[/tex]

Therefore, the amount to be paid back altogether is $480

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