Question

You get a student loan from the Educational Assistance Foundation to pay for 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

Answer: $2,880

Explanation:

We know that the formula to calculate simple interest is given by :-

`I=P* r* t`, where P is principal amount , t is time and r is the rate of interest.

Given : Time = 10 years;

Interest rate = 8% =0.08;

Principal = $3,600

Then ,
`I=3600* 0.08* 10`

`\Rightarrow\ I= \$\ 2,880`

Hence, the amount of simple interest = $2,880

Answer 2

1) the equation to obtain the simple interest is

I = C*i*n,where n is the time, C is capital and i is the rate of interest, then you have

I = 3600*0.08*10 = 2880, $ 2800 you will have to pay for the loan