Bill takes a loan of $9,000.00 at a 8% simple interest rate for 6 years.
a. How much interest will he pay after 2 years?
b. How much interest will he pay in total for the loan?
$720.00; $3,600.00 $1,408.00; $4,224.00 $36,000.00; $12,000.00 $1,440.00; $4,320.00
(1 point)
a. After 2 years, Bill will pay interest of:
Interest = Principal x Rate x Time
Interest = $9,000.00 x 0.08 x 2
Interest = $1,440.00
Therefore, Bill will pay $1,440.00 in interest after 2 years.
b. The total interest Bill will pay for the loan is:
Interest = Principal x Rate x Time
Interest = $9,000.00 x 0.08 x 6
Interest = $4,320.00
Therefore, Bill will pay $4,320.00 in total interest for the loan.
The answer is: $1,440.00; $4,320.00
To calculate the interest in each case, we can use the formula:
Interest = Principal * Rate * Time
a. After 2 years:
Interest = $9,000.00 * 0.08 * 2
Interest = $1,440.00
So, Bill will pay $1,440.00 in interest after 2 years.
b. Total interest for the loan after 6 years:
Interest = $9,000.00 * 0.08 * 6
Interest = $4,320.00
So, Bill will pay a total of $4,320.00 in interest for the loan.