Tommy Blox borrowed $4000 from a bank at 12% simple interest.After 3 years,he paid back the loan plus the interest.How much did Tommy pay back altogether?
The formula we'll use for this is the simple interest formula, or:
Where:
P is the principal amount, $4000.00. r is the interest rate, 12% per year, or in decimal form, 12/100=0.12. t is the time involved, 3....year(s) time periods. So, t is 3....year time periods.
To find the simple interest, we multiply 4000 × 0.12 × 3 to get that:
