Meghan has a $1,000 personal loan with 10% interest. She has 3 years to pay it off. How much interest will she pay over the life of the loan?
Answer
A
$3
B
$10
C
$300
D
$1,000
Explanation
Assuming simple interest, calculate interest as principal × annual rate × time: $1,000 × 0.10 × 3 = $300. Meghan will pay $300 in interest, which is choice C.
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