Joe borrowed $2,000 from the bank at a rate of 7% simple interest per year. How much interest did he pay in 3 years? In 3 years, Joe pays $ in interest.
Joe will pay $420 in interest for three years. Using the PRT formula (principle/2000, rate/7%, time/3) you will multiply 2000 by 0.07/7% and then multiply that by the time of 3 for years. So 2000 times 0.07 times three equals 420, that's your answer.
