Question
Thang decided to borrow $5000 from his local bank to help pay for a car. His loan was for 3 years at a simple interest rate of 6%. How much interest will Thang pay?
Answers
GPT-4o mini
To calculate the interest on a simple interest loan, you can use the formula:
\[
\text{Interest} = P \times r \times t
\]
where:
- \( P \) is the principal amount (the initial loan amount),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time (in years).
In Thang's case:
- \( P = 5000 \)
- \( r = 6\% = 0.06 \)
- \( t = 3 \)
Now, substitute the values into the formula:
\[
\text{Interest} = 5000 \times 0.06 \times 3
\]
Calculating it step-by-step:
1. Calculate \( 5000 \times 0.06 \):
\[
5000 \times 0.06 = 300
\]
2. Then multiply by \( t \):
\[
300 \times 3 = 900
\]
So, the total interest Thang will pay over 3 years is \(\$900\).
\[
\text{Interest} = P \times r \times t
\]
where:
- \( P \) is the principal amount (the initial loan amount),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time (in years).
In Thang's case:
- \( P = 5000 \)
- \( r = 6\% = 0.06 \)
- \( t = 3 \)
Now, substitute the values into the formula:
\[
\text{Interest} = 5000 \times 0.06 \times 3
\]
Calculating it step-by-step:
1. Calculate \( 5000 \times 0.06 \):
\[
5000 \times 0.06 = 300
\]
2. Then multiply by \( t \):
\[
300 \times 3 = 900
\]
So, the total interest Thang will pay over 3 years is \(\$900\).