Question

Capital Credit offered Jackson a credit card loan of $3,000 at an interest rate of 10.9%. If he was to repay the loan in 3 years, how much interest would he pay?

A) $30.90
B) $90.30
C) $327
D) $900.30

Answer 1

Jackson would pay $327 in interest on his credit card loan.

Step-by-step explanation:

To calculate the interest paid on a loan, we can use the formula: Interest = Principal x Rate x Time.

Given that Jackson borrowed $3,000 with an interest rate of 10.9% and a repayment period of 3 years, we can plug in the values into the formula:

Interest = $3,000 x 10.9% x 3 years = $327.

Therefore, the correct answer is C) $327.