Lloyd borrowed $800 from a relative who will charge him %7 annual simple interest. If it takes Lloyd 3 years to pay the money back, how much interest will he pay?
A. $56
B. $80
C. $112
D. $168
To find simple interest, we use the formula:
I = P * r * t
where I is the interest, P is the principal (the amount borrowed), r is the annual interest rate as a decimal, and t is the time in years.
In this case, P = $800, r = 0.07, and t = 3.
I = 800 * 0.07 * 3 = $168
Therefore, the answer is D. $168.
To calculate the amount of interest Lloyd will pay, we need to use the formula for simple interest:
Interest = Principal x Rate x Time
In this case:
Principal = $800
Rate = 7% (expressed as a decimal, so 0.07)
Time = 3 years
Plugging these values into the formula:
Interest = $800 x 0.07 x 3
Interest = $168
Therefore, Lloyd will pay $168 in interest.
The correct answer is D. $168.
To find out how much interest Lloyd will pay, we can use the formula for simple interest:
Interest = Principal × Rate × Time
First, let's calculate the interest using the given information:
Principal (borrowed amount) = $800
Rate of interest = 7% (convert this percentage to decimal by dividing by 100: 7/100 = 0.07)
Time (in years) = 3
Interest = $800 × 0.07 × 3
Interest = $168
Therefore, Lloyd will pay a total of $168 in interest.
The answer is D. $168.