Answer: They will end up paying $2,400.
Step-by-step explanation:
Since the annual interest rate is 8% of $10,000, take 8% of 10,000 by multiplying these numbers. This gives you $800.
This is only the annual interest rate, the Todd family's loan and interest isn't paid until 36 months have passed. Since 36 months is equal to 3 years, we can multiply the annual rate by 3. (800*3)
The Todd family will pay $2,400 in interest by the end of the period.
