Final answer:
Chad paid $1,600 in interest on his student loan of $10,000 at 8% annual simple interest after paying it off in two years.
Step-by-step explanation:
To calculate the total amount of interest Chad paid on the student loan, we use the formula for simple interest: Interest = Principal × Rate × Time. Chad got a student loan for $10,000 at 8% annual simple interest. If the time period is 2 years, the calculation would be as follows:
Interest = $10,000 × 0.08 × 2
Interest = $800 × 2
Interest = $1,600
Therefore, Chad paid $1,600 in interest by the time he paid off the loan in two years.