Question

Enrique takes out a student loan to pay for his college tuition this year. find the interest on the loan if he borrowed $2,500 at annual interest rate of 6% for 15 years.

Answer 1

Suppose the interest model payment follows a simple interest model. The amount of interest to be paid will be given by:
I=(PRT)/100
P=principle=$2500
R=rate=6%
T=time=15 years.

Therefore:
S.I=(2500×6×15)/100
=$2250