Question

joe borrowed $6,000 from the bank at a rate of 7% simple interest per year. how much interest did he pay in 8 years? in 8 years, joe pays $\square$ in interest.

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal amount, \( r \) is the annual interest rate (in decimal form), and \( t \) is the time in years.

Step2: Convert rate to decimal

The annual interest rate is \( 7\% \), so in decimal form, \( r = \frac{7}{100}= 0.07 \).

Step3: Substitute values into formula

We know that \( P = \$6000 \), \( r = 0.07 \), and \( t = 8 \) years. Substituting these values into the formula:
\( I=6000\times0.07\times8 \)
First, calculate \( 6000\times0.07 = 420 \).
Then, calculate \( 420\times8 = 3360 \).

Answer:

3360