To determine the simple interest Dave will have to pay on his loan, we will use the simple interest formula:
[tex]\[ \text{Interest} = P \times r \times t \][/tex]
where:
- [tex]\( P \)[/tex] is the principal amount (the initial amount of money)
- [tex]\( r \)[/tex] is the rate of interest per year (expressed as a decimal)
- [tex]\( t \)[/tex] is the time the money is borrowed for, in years
Let's identify the values from the question:
- The principal amount [tex]\( P \)[/tex] is \[tex]$10,000.
- The rate of interest \( r \) is 6%, or 0.06 as a decimal.
- The time period \( t \) is 3 years.
Now we substitute these values into the formula:
\[ \text{Interest} = 10000 \times 0.06 \times 3 \]
First, multiply the principal amount by the rate of interest:
\[ 10000 \times 0.06 = 600 \]
Next, multiply this result by the time period:
\[ 600 \times 3 = 1800 \]
Thus, the total interest Dave will have to pay over 3 years is \$[/tex]1,800.
Therefore, the correct answer is:
[tex]\[ \text{B.} \$1,800 \][/tex]
