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- Ariel takes a loan of $8,000 to buy a used truck at the rate of 9 % simple Interest.
Question 1:
Ariel takes a loan of $8,000 to buy a used truck at the rate of 9 % simple Interest.Calculate the annual interest to be paid for the loan amount. A. 720
Feedback From the details given in the problem Principle = P = $8,000 and R = 9% or 0.09 expressed as a decimal.
As the annual Interest is to be calculated, the time period T =1.
Plugging these values in the simple Interest formula,
I = P x T x R
= 8,000 x 1 x 0.09
= 720.00
As the annual Interest is to be calculated, the time period T =1.
Plugging these values in the simple Interest formula,
I = P x T x R
= 8,000 x 1 x 0.09
= 720.00
B. 890
C. 688
D. 700
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