Bill takes a loan of $9,000.00 at a 8% simple interest rate for 6 years.
a. How much interest will he pay after 2 years?
b. How much interest will he pay in total for the loan?
A$720.00; $3,600.00
B$1,408.00; $4,224.00
C$36,000.00; $12,000.00
D$1,440.00; $4,320.00
why don't you just tell us the answer
To find the answers to the given questions, we need to use the formula for simple interest:
Simple Interest = Principal × Interest Rate × Time
a. To find the amount of interest after 2 years, we can plug the given values into the formula:
Principal = $9,000.00
Interest Rate = 8% = 0.08 (as a decimal)
Time = 2 years
So, the interest after 2 years would be:
Interest = (Principal × Interest Rate × Time)
Interest = ($9,000.00 × 0.08 × 2)
Interest = $1,440.00
b. To find the total interest paid for the loan, we need to multiply the interest after 2 years by the total number of years:
Total Interest = Interest after 2 years × Total years
Total Interest = $1,440.00 × 6
Total Interest = $8,640.00
Therefore, the correct answer is D. $1,440.00 for the interest after 2 years and $4,320.00 for the total interest paid.
To calculate the interest, we can use the formula:
Interest = Principal × Rate × Time
a. To find the interest after 2 years, we'll substitute the given values into the formula:
Principal = $9,000.00
Rate = 8% or 0.08 (in decimal form)
Time = 2 years
Interest = $9,000.00 × 0.08 × 2 = $1,440.00
Therefore, Bill will pay $1,440.00 in interest after 2 years.
b. To find the total interest paid for the loan, we can use the same formula but with the given time period of 6 years:
Principal = $9,000.00
Rate = 8% or 0.08
Time = 6 years
Interest = $9,000.00 × 0.08 × 6 = $4,320.00
Therefore, Bill will pay a total of $4,320.00 in interest for the loan.
Looking at the answer choices, we can see that option D is the correct one:
D) $1,440.00 after 2 years; $4,320.00 in total for the loan.
(a) 2*8% = 16% = 0.16 * 9000 = 1440
Looks like D, but work (b) to be sure