To calculate the simple interest paid on the loan, you can use the formula:
\[ I = P \times r \times t \]
where:
- \( I \) is the interest,
- \( P \) is the principal amount (the initial amount borrowed),
- \( r \) is the interest rate (as a decimal),
- \( t \) is the time the money is borrowed for (in years).
Given:
- \( P = 900 \) (the amount borrowed),
- \( r = 3% = 0.03 \) (the interest rate),
- \( t = 3 \) years (the duration of the loan).
Now plug in the values:
\[ I = 900 \times 0.03 \times 3 \]
Calculating that step by step:
- Calculate \( 0.03 \times 3 = 0.09 \).
- Then multiply \( 900 \times 0.09 = 81 \).
Thus, the amount of interest Pablo paid at the end of the loan is $81.