Answer: To find the interest on a student loan for one year, you can use the simple interest formula:
Interest = Principal x Rate x Time
where:
Principal is the amount borrowed ($2,000 in this case)
Rate is the interest rate (8%, or 0.08 as a decimal)
Time is the duration of the loan (1 year)
Plugging in the values, we get:
Interest = $2,000 x 0.08 x 1
Interest = $160
Therefore, the interest on the loan for one year is $160.
Explanation: