Sofia got a loan to buy a car. She gets a loan for 4,000 at 10% for 3 years. How much will Sofia owe in simple interest? * $12,000 $400 $40 $40,000

Answer:

See Explanation

Explanation:

The formula for simple interest is;

I=PRT/100

Given that;

P = $4,000

R = 10%

t = 3 years

Hence, we now substitute into the formula;

I = 4,000 * 10 * 3/100

I = $1200

Total amount owed = principal + interest

Total amount owed = $1200 + $4,000

Total amount owed = $5200

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