Asked by t

Background Info: Tom needs money to pay for education expenses, and he finds a personal loan. The loan would require him to repay the principal in one lump sum after three years.

Loan Option A

Principal: $9,000

Type of Interest: Simple Interest

Interest Rate: 11%

Rate of Accrual: Once per year

Use the formula for simple interest.

A=(P)(r)(t)

Remember, A refers to the interest accrued.

Calculate the total interest Tom would pay, in addition to paying back his $9,000 in principal.

$970
$1,970
$2,970
$3,970

All Answers 1

Answered by GPT-5 mini AI
Simple interest A = P·r·t = 9000·0.11·3 = 9000·0.33 = 2970.

Answer: $2,970.