Answer:
$2,631.20
Step-by-step explanation:
We are told that the loan has a simple interest rate of 8% per year. This means that every year that goes on without Kyle paying back the money, he will have to pay an extra 8% of $32,890 as interest.
After one year, he only has to pay back one lot of interest, just 8% of $32,890.
To find that number we can change 8% into a decimal: 8%/100% = 0.08
And then multiply this by the amount of loan money:
0.08 x 32,890 = 2,631.20
Kyle has to pay $2,631.20 of interest at the end of one year.
Hope this helped!
