Alice has a loan of $24,820. This loan has a simple interest rate of 3.5% per year. No payments will be made on the loan until the end of one year.
How much interest will Alice pay on this loan at the end of one year?
To calculate the interest on the loan at the end of one year, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Where:
Principal = $24,820
Rate = 3.5% or 0.035
Time = 1 year
Plugging in the values, we get:
Interest = $24,820 x 0.035 x 1
Interest = $24,820 x 0.035
Interest = $867.70
Therefore, Alice will pay $867.70 in interest on the loan at the end of one year.