Question

Juan borrowed $ 3, 500 from a credit union for 6 years and was charged simple interest at a rate of 4.97 %. What is the amount of interest he paid at the end of the loan?

Answer 1

$4543.70

General Formulas and Concepts:

Pre-Algebra

1. Order of Operations: BPEMDAS
2. Brackets
3. Parenthesis
4. Exponents
5. Multiplication
6. Division
7. Addition
8. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula:
`\displaystyle A = P(1 + rt)`

• P is principle amount
• r is rate
• t is time

Explanation:

Step 1: Define

Identify

P = 3500

t = 6

r = 4.97% = 0.0497

Step 2: Find Interest

1. Substitute in variables [Simple Interest Rate Formula]:
   `\displaystyle A = 3500(1 + 0.0497 \cdot 6)`
2. (Parenthesis) Multiply:
   `\displaystyle A = 3500(1 + 0.2982)`
3. (Parenthesis) Add:
   `\displaystyle A = 3500(1.2982)`
4. Multiply:
   `\displaystyle A = 4543.7`