The city of Bradenton is offering simple interest loans to s

The city of Bradenton is offering simple interest loans to start-up businesses at a rate of 3.5%. Gaetano Cannata obtains one of these loans for $6000 for 3 years to help pay for start-up costs of his restaurant, Ortygia.

Determine the amount of money Gaetano must repay the city after 3 years.

Solution

Given dats\'s;

interest=i=3.5%=3.5/100=0.035

P= $6000

n= 3years

Formula, A= P(1+i n)

A= 6000(1+(0.035*3))

A=6630$

He neeeds to pay 6630$ at the end of 3 years.