Question

Jacob borrowed $30, 000 to start up his consulting business. The loan had simple interest rate of 6.2% for 3 years. Use I= part to find the amount of interest he will pay with the loan.I= interest;p=principal: r= rate ( expressed as a decimal 0.062): t=time in year

Answer 1

The amount of interest is $5580.

Explanation:

Given : Jacob borrowed $30, 000 to start up his consulting business. The loan had simple interest rate of 6.2% for 3 years.

To find : The amount of interest he will pay with the loan ?

Solution :

Using interest formula,

`I=P* R* T`

Where, P is the principal P=$30,000

R is the rate of interest R=6.2%=0.062

T is the time t=3 years.

Substitute the value in the formula,

`I=30000* 0.062* 3`

`I=5580`

Therefore, The amount of interest is $5580.