3.
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?
$868.70
$72.39
$8,687.00
$25,688.70
To calculate the interest, you can use the formula:
Interest = Principal x Rate x Time
Interest = $24,820 x 0.035 x 1
Interest = $868.70
Therefore, Alice will pay $868.70 in interest on this loan at the end of one year.
So the correct answer is: $868.70