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13-05-2020
Mathematics

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You are given a loan from the bank for $1,000. The bank charges you simple interest at an annual rate of 4%. Choose the correct equation below that shows how much interest you will pay if the loan is for 3 years.

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13-05-2020

You will pay an interest of $120 for the three years of interest

4% of 1000 is 40
So for 3 years he would pay 40x3=120
All together he would have to pay 1120

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