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Spencer borrowed $50 from his cousin, who charged him 6% simple interest each year. If Spencer pays his cousin back 3 years later, how much will he owe his cousin?
A
$56
B
$59
С
$68
D
$6

Sagot :

Given:

Principal = $50

Rate of simple interest = 6%

Time = 3 years

To find:

The amount after 3 years.

Solution:

Formula for simple interest:

[tex]I=\dfrac{P\times r\times t}{100}[/tex]

Where, P is principal, r is the rate of interest in percentage and t is the number of years.

Putting [tex]P=50,\ r=6,\ t=3[/tex] in the above formula, we get

[tex]I=\dfrac{50\times 6\times 3}{100}[/tex]

[tex]I=\dfrac{900}{100}[/tex]

[tex]I=9[/tex]

Formula for amount is:

[tex]A=P+I[/tex]

Where, P is principal and I is the simple interest.

Putting [tex]P=50,\ I=9[/tex], we get

[tex]A=50+9[/tex]

[tex]A=59[/tex]

Therefore, the correct option is B.

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