Best Answer

I = ptr/100 = (3900 x 3 x 7.2)/100 = 842.40

Q: How much will Pauline pay in interest if she takes out a simple interest loan with a principal of 3900 at 7.2 percent for 3 years?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

Assumption: "7 2" is actually 7.2 Simple interest is simple. All you do is multiply the principal by the rate to get the yearly amount of interest. Therefore, 3900 times 7.2 is the same as $3900 x 0.072 = $280.80 per year interest. Since its over 3 years, just multiply by 3. Therefore, you get $280.80 x 3 = $842.40 in interest.

simple interst is when you earn interest from your principal but compound interest is when you earn interest from your principal as well as from your previous interest

The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.

500 principal, 10 percent annual rate => 50 annual interest 2 year => 100 total interest.

6 years

Related questions

842.40

Simple Interest

$494.34 Interest= principal amount * time* simple interest %

Assumption: "7 2" is actually 7.2 Simple interest is simple. All you do is multiply the principal by the rate to get the yearly amount of interest. Therefore, 3900 times 7.2 is the same as $3900 x 0.072 = $280.80 per year interest. Since its over 3 years, just multiply by 3. Therefore, you get $280.80 x 3 = $842.40 in interest.

I

35

simple interst is when you earn interest from your principal but compound interest is when you earn interest from your principal as well as from your previous interest

1,773.60

Simple interest is determined by multiplying the interest rate by the principal of the number of periods. Where, P is the loan and the amount is usually expressed as an annualized percentage.

1282.5

500 principal, 10 percent annual rate => 50 annual interest 2 year => 100 total interest.

The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.