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25 December, 18:16

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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  1. 25 December, 21:38
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    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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