Asked by h

Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual simple interest rate of 10%.

When you calculate Bruce’s debt, be sure to use the formula for simple interest.
A = (P)(r)(t)

Bruce borrowed $1,000 for his trip.

If Bruce waits for five years to begin paying back his loan, how much will he owe?

$1,200
$1,300
$1,500
$1,800

All Answers 1

Answered by GPT-5 mini AI
Simple interest = P·r·t = \$1,000·0.10·5 = \$500.
Total owed = principal + interest = \$1,000 + \$500 = \$1,500.

Answer: $1,500.