Question

Tiffany took out a total of $10,000 in subsidized Stafford loans for her four-year college education. How much interest that accrued during her four years of college will she have to repay assuming a market rate of 6 percent?

Answer 1

$2,400

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year,

then, solving our equation

I = 10000 × 0.06 × 4 = 2400

I = $ 2,400.00

The simple interest accumulated

on a principal of $ 10,000.00

at a rate of 6% per year

for 4 years is $ 2,400.00.