You borrow $3,000 at 9% interest for two years
the interest is
i = Prt = $3000 * 0.09 * 3 = $_____
To calculate the interest on a loan, you can use the formula:
Interest = Principal × Rate × Time
Where:
- Principal is the amount borrowed
- Rate is the annual interest rate as a decimal (e.g., 9% is 0.09)
- Time is the duration of the loan in years
In this case, the principal (amount borrowed) is $3,000, the interest rate is 9% (0.09 as a decimal), and the loan duration is two years.
So, substituting the values into the formula:
Interest = $3,000 × 0.09 × 2
= $540
Therefore, the interest on a $3,000 loan at 9% interest for two years would be $540.
To calculate the total interest and the amount to repay, we can use the following formula:
Interest = Principal * Rate * Time
Where:
Principal is the amount borrowed ($3,000)
Rate is the interest rate (9% or 0.09)
Time is the period of time in years (2 years)
Step 1: Calculate the interest:
Interest = $3,000 * 0.09 * 2
= $540
Step 2: Calculate the amount to repay:
Amount to repay = Principal + Interest
= $3,000 + $540
= $3,540
So, you will need to repay a total of $3,540, including $540 in interest, over the two-year period.