Question

Robert borrowed $5,000 at 3% simple interest from his brother to buy a previously owned car. At the end of 3 years, Robert paid back the loan. How much did Robert pay in all?

Answer 1

This is an equation I learned at school that can help with future questions.

I = prt

I standing for interest, P for principal, R for rate (convert percent to decimal) and time (years)

I = i , P = 5000, R = 0.03, T = 3 yrs.

I = 5000(0.03)(3)

I = $450

He paid 450.