4
At the beginning of the year, Mr. Simms took
out a $3,000 loan from a bank that charges a
simple interest rate of 6%. He plans to save
$3,500, which he will use to pay back the entire
amount of the loan plus interest at the end of
the year.
Exactly how much money will remain after he
pays back the loan amount and interest?
Use: A = P(1 + r)

Use the provided simple interest formula, to find the amount that Mr. Simms owes at the end of the year.
Find the difference of the amount reserved to pay back the loan, and the amount owed.

[tex]A=P(1+r)\\A=(3000)(1+(0.06))\\A=3000*1.06\\A=3180[/tex]

So the amount owed at the end of the year will be $3180

[tex]\text{amount reserved}-\text{amount owed}=\text{amount remaining}\\3500-3180=320[/tex]

So, the amount remaining after Mr. Simms paid off the loan from the $3500 saved is $320

vtkarishma vtkarishma · Answer 2 · 2022-07-04T08:09:59+02:00

320 $ will remain after he pays back the loan amount and interest.

Calculate the balance due from Mr. Simms at the end of the year using the basic interest formula supplied.

Find the difference between the sum set aside to repay the loan and the sum due.

Step 1: Calculating the debt

A= P( 1+r)

A= (3000) + (1+ (00.6))

A= 3000* 1.06

A= 3180

Consequently, $3180 will be due at the end of the year.

Finding the difference in step two:

amount reserved- amount owed= amount remaining.

3500-3180= 320

Therefore, Mr. Simms had $3500 saved after paying off the debt, leaving him with $320.

Learn more about loan and interest questions here:

https://brainly.com/question/20796174

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