To calculate the simple interest paid over a period of time, you can use the formula:
\[ \text{Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial amount borrowed),
- \( r \) is the rate of interest (as a decimal),
- \( t \) is the time (in years).
For Pablo's loan:
- \( P = 900 \) (the amount borrowed),
- \( r = 3% = 0.03 \) (the interest rate),
- \( t = 3 \) (the loan period in years).
Now plug in the values:
\[ \text{Interest} = 900 \times 0.03 \times 3 \]
Calculating that:
\[ \text{Interest} = 900 \times 0.03 = 27 \] \[ \text{Interest} = 27 \times 3 = 81 \]
Therefore, the amount of interest Pablo paid at the end of the loan is $81.
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