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  1. Mr. Adeb takes out an $8,000 personal loan to

restore his antique car. The bank loans him the

money at 4.5% simple interest for 4 years.

AHow much will Mr. Adeb pay in interest?
BWhat is the total cost of the restoration

including the interest?

2.A $3,000 loan is taken out for 12% interest for 6

months. What is the amount of interest charged?

A$36.00
B$90.00
C$180.00
D$270.00
  1. Attend to precision. Mr. and Mrs. Watson decide

to remodel their bathroom. They need a short term

loan. They borrow $3,200 from a local bank at an

interest rate of 11%. After receiving their income

tax return, they are able to pay off the loan after

only 9 months. How much interest did they pay on

i give 20 points

Verified Answer :

texaschic101
  1. I = PRT
        I = (8000)(0.045)(4)
        I = 1440
    (a) he pays 1440 in interest
    (b) total cost including interest : 8000 + 1440 = 9440
    =================
    2. I = PRT
        I = (3000)(0.12)(6/12)
        I = 180 <===
    =================
    3. I = PRT
        I = (3200)(0.11)(9/12)
        I = 264 <===

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