Question

You get a student loan from the Educational Assistance Foundation to pay for your educational expenses as you earn your associate’s degree. You will be allowed 10 years to pay the loan back. Find the simple interest on the loan if you borrowed $3,600 at 8%.

Answer 1

$2880

Explanation:

I = Prt

= $3600·8%·10 = 0.80·$3600 = $2880

The simple interest on $3600 over a 10-year period is $2880.