Question

Dave has a three–year college loan for $10,000. The lender charges a simple interest rate of 6 percent. How much interest will he have to pay?

Answer 1

I= 10000*3*0.06 I=1800 is the answer

Answer 2

$1800

Explanation:

Using the formula for simple interest:

`A=P(1+rt)`

Where:

A = Total Accrued Amount (principal + interest)

P = Principal Amount

r = Rate of Interest per year in decimal

t = Time in years

Substituting the values:

A=10000(1+0.06(3))

A=11800

A is the total accrued amount, which means to find the interest paid over the three years, subtract the principal amount. So the interest is 11800-10000=1800