To find simple interest, we use the formula:
I = P * r * t
where I is the interest, P is the principal (the amount borrowed), r is the annual interest rate as a decimal, and t is the time in years.
In this case, P = $800, r = 0.07, and t = 3.
I = 800 * 0.07 * 3 = $168
Therefore, the answer is D. $168.
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?
A. $56
B. $80
C. $112
D. $168
1 answer
1 answer