lloyd borrowed 800 from a relative who will charge him 7% annual simple interest. if it takes lloyd 3 years to pay the money back, how much interest will he pay?

Answer 1

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

I = P x r x t

Where:
I = interest
P = principal (the amount borrowed)
r = rate (as a decimal)
t = time (in years)

We know that P = 800, r = 0.07 (7% expressed as a decimal), and t = 3. Plugging these values into the formula, we get:

I = 800 x 0.07 x 3
I = 168

Therefore, Lloyd will pay $168 in interest over the 3-year period.