Question

Jake received a student loan of $12,000 dollars. He plans on paying off the loan for 5 years. At the end of 5 years, Jake will have paid $3,600 in interest. What is the simplest interest rate on the student loan?

Answer 1

To do this, you would create an equation for the problem.

`(3,600)/(12,000)` =
`(x)/(100)`

Next, you would cross multiply.
12,000x = 360,000

The last step would be to isolate the x. To do this, you would divide both sides by 12,000.
x = 30%

The interest rate would be 30%.

I hope this helps!