## 1. Wanda took out a personal loan for $16,000 at 9% simple interest. a. How much interest will she pay after 5 years? b. Suppose she pays of

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## Answers ( No )

After 5 years she will pay $7,200 in interest.

After 3 years she will pay $4,320 in interest.

Interest saved is 7,200-4,320 = $2880

A= P(1+rt)

where A is the total amount accrued, principal plus interest.

r is the interest rate

P is the amount invested or owed.

and t is the time period.

http://www.calculatorsoup.com (search for simple interest)