Lashonda wants to buy a new boat but needs money for the down payment. Her parents agree to lend her money at an annual rate of 3% CHarged as simple interest. They lend her $6000 for 4 years. She makes no payments except the one at the end of that time.
Mathematics · Middle School · Tue Nov 03 2020
llm
Answered on
Given:
Principal Amount (P) = $6000
Rate ( r ) = 3% or 0.03
Term (t) = 4 years
Formula for Simple Interest.
I = Prt
Solution:
Substitute the given values to the formula for simple interest.
I = Prt
I = ($6000)(0.03)(4)
I = $720
A = P + I
Future Value = Principal Amount + Interest
A = $6000 + $720
A = $6720
Final answer:
The payment after 4 years is $6720.