Final answer:
The simple interest on a $3,500 loan borrowed at 3% interest over a 4-year period is $420.
Step-by-step explanation:
To find the simple interest on a $3,500 loan borrowed at 3% interest over a 4-year period, we can use the formula: Interest = Principal × Rate × Time. Given that the principal (P) is $3,500, the interest rate (R) is 3% (or 0.03), and the time (T) is 4 years, we can substitute these values into the formula: Interest = $3,500 × 0.03 × 4 = $420.