Answer:
Thang will pay $1620 interest
Step-by-step explanation:
Simple Interest
Definition: Interest calculated on the original principal only of a loan or on the balance of an account.
Unlike compound interest where the interest earned in the compounding periods is added to the new principal, simple interest only considers the principal to calculate the interest.
The interest earned is calculated as follows:
I=P.r.t
Where:
I = Interest
P = initial principal balance
r = interest rate
t = time
Thang borrowed P=$6000 from his local bank. The loan was for t=3 years at a simple interest rate of r=9% = 0.09. The interest is calculated as:
I = 6000*0.09*3
I = 1620
Thang will pay $1620 interest
