Business FinancesQuestion 304 of 1632
A contractor borrows $30,000 at 6% simple annual interest and repays it in full after 3 years. What is the total amount repaid?
a.$30,000
b.$1,800
c.$5,400
d.$35,400
Explanation
Simple interest = $30,000 × 0.06 × 3 = $5,400. Total repaid = principal + interest = $30,000 + $5,400 = $35,400.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)