The formula to calculate simple interest is I = P x r x t, where I is the interest, P is the principal or initial amount of the loan, r is the annual interest rate and t is the time period in years.
Using this formula, we can calculate Sam's interest as:
I = 1200 x 0.09 x 5
I = $540
Therefore, the answer is C. Sam will pay $540 in interest over 5 years.
Sam has a loan for $1200 at a rate of 9% annually. How much interest will he pay in 5 years?
Responses
A $54.40
B $1740.00
C $540.00
D $108.00
1 answer
1 answer