00:01
In this problem, it is said that you take out a four -month $3 ,000 loan at 8 % simple interest.
00:06
We need to determine how much you will owe at the end of the four months.
00:10
Now, the total amount that you will owe will be equal to the principal amount plus the interest that you owe.
00:18
So the principle plus the interest.
00:20
And what is the formula for simple interest? it is p times r times t, where r is the interest rate and t is the time in years.
00:28
So what is the principal amount that's $3 ,000? we take out a $3 ,000 loan.
00:35
And we have p times r.
00:37
What is r? we have an 8 % simple interest rate.
00:41
So r is 8%, which is 8 over 100 or 0 .08...