Question

Kiara borrowed $21,000 at 5% interest to be paid back in 9 years. .
Find the simple interest. Include appropriate unit in final answer.

How much interest will she pay?

Answer 1

To find the simple interest, we can use the formula:

Simple Interest = Principal x Rate x Time

Principal = $21,000
Rate = 5% = 0.05
Time = 9 years

Simple Interest = $21,000 x 0.05 x 9
Simple Interest = $9,450

Therefore, Kiara will pay $9,450 in interest over the 9-year period.