Step 1

We can start with the simple interest formula:

Where:

• P is the principal ($3000)
• r is the interest rate per year (20 ÷ 100 = 0.2)
• t is the loan duration in years (3 ÷ 12 months = 0.25year).

Step 2

With P=9000, r=0.2 and t=0.25, we can substitute these values into the formula as shown:

Step 3

The calculated interest is $450. Hence, the answer is C.