Background Info: Tom needs money to pay for education expenses, and he finds a personal loan. The loan would require him to repa

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2 months ago

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Background Info: Tom needs money to pay for education expenses, and he finds a personal loan. The loan would require him to repa

y the principal in one lump sum after three years. Loan Option A Principal: $9,000 Type of Interest: Simple Interest Interest Rate: 11% Rate of Accrual: Once per year Use the formula for simple interest. A=(P)(r)(t) Remember, A refers to the interest accrued. Calculate the total interest Tom would pay, in addition to paying back his $9,000 in principal. $970 $1,970 $2,970 $3,970

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2 answers:

Free_Kalibri [3.7K] · Answer 1 · 2026-02-26T16:31:05+03:00

Answer: Tom would incur $2,970. in interest beyond repaying his principal of $9000.

To calculate the interest owed on the principal over a specified timeframe at a defined interest rate, we use the simple interest formula.

This Simple Interest Formula is:

$\mathbf{A = (P)(r)(t)}$

where

A = interest earned on the principal

P = the principle or the amount borrowed

r = interest rate

t = the duration in years for which interest is accrued.

<pWhen we substitute the values into the formula, we have,

$A = (9000)(0.11)(3)$

$\mathbf{A = 2,970}$

Scilla [3.8K] · Answer 2 · 2026-02-26T16:28:32+03:00

The interest Tom would owe on the personal loan totals $\boxed{\$ 2970}.$ . Option (c) is correct.

Additional explanation:

The formula for calculating compound interest is given by,

$\boxed{A = P{{\left( {1 + r} \right)}^t}}$

While the simple interest formula is represented as,

$\boxed{A = P \times r \times t}$

In this context, ${\text{A}$ indicates the total amount, ${\text{P}$ signifies the initial principal, $r$ is the rate of interest, and t denotes the duration.

Provided data:

The simple interest rate stands at $11\%$ , with a duration of 3 years.

The principal amount is $\$ 9000.$

Calculative process:

To determine the interest Tom would incur on the personal loan, we will compute it as follows,

$\begin{aligned}A&= P \times r \times t\\&= 9000 \times 0.11 \times 3\\&= 27000 \times 0.11\\&= \$ 2970\\\end{aligned}$

The interest Tom would pay on the personal loan amounts to $\boxed{\$ 2970}$ . Option (c) is the correct choice.

Option (a) is incorrect.

Option (b) is incorrect.

Option (c) is the right answer.

Option (d) is incorrect.

Explore further:

1. Discover more about the inverse of the function.

2. Understand the equation of a circle.

3. Gain insights into the range and domain of the function.

Answer information:

Grade Level: High School

Subject: Mathematics

Chapter: Simple Interest

Keywords:Tom, education expenses, personal loan, repayment, one-time payment, 3 years, simple interest rate, Principal, investment, interest rate, account overview, total interest, 11% interest, repayment process, nearest hundredth percent.