Question

Enrique takes out a student loan to pay for his college tuition this year. Find the interest on the loan if he borrowed $2500 at an annual interest rate of 6% for 3 years.Simple interest

Answer 1

$450

Step-by-step explanation:

The interest of the loan can be calculated using the following equation:

`I=P\cdot r\cdot t`

Where P is the amount that he borrowed, r is the interest rate and t is the number of years.

So, replacing P by 2500, r by 0.06, and t by 3 years, we get:

`\begin{gathered} I=2500^{}\cdot0.06\cdot3 \\ I=450 \end{gathered}`

Then, the interest of the loan is $450.