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3 votes
Steven borrows $60,000 for school. The interest rate is 6.5%. He wants to pay off the loan in 12 years. What would be the simple interest rate?

$4,680
$4,680,000
$44,000
$46,800

User Bbb
by
7.9k points

2 Answers

4 votes

Answer:

$46,800

Explanation:

Simple Interest Formula

I = Prt

where:

  • I = interest
  • P = principal
  • r = interest rate (in decimal form)
  • t = time (in years)

Given:

  • P = $60,000
  • r = 6.5% = 0.065
  • t = 12 years

Substitute the given values into the formula and solve for I:


\implies \sf I=60000(0.065)(12)


\implies \sf I=3900(12)


\implies \sf I=46800

Therefore, the interest is $46,800.

User Weotch
by
8.2k points
3 votes

Answer:

  • D) $46800

===========================

The amount of simple interest is:

  • Interest = Loan * rate * time

or

  • I = P * r * t

Given:

  • P = $60000, r = 6.5%, t = 12 years

Substitute and calculate:

  • I = 60000*(6.5/100)*12 = 46800

The matching choice is D.

User Christoffer Lette
by
8.7k points
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