Question

Ron borrowed $30,000 to start up his consulting business. The loan had a simple interest rate of 5.5% for 4 years. Use the formula I=prt to find the amount of interest he will pay on the loan. I= interest, P=principal, R=rate (expressed as a decimal 0.055), T=time in years.

Answer 1

$6,600

Explanation:

So first of all you want to start by finding what P, r and t would be.

• P = Principal amount ($$)
• r = interest rate (%)
• t = time (years)

Once I found all of those I put them into the equation (l = Prt) and solved (by putting it into a calculator obviously). That is how I came up with my answer. Check the screenshot provided to see what P, r and t would be and to see all my work! :)

Hope this helps! :)

Have a great day!

Answer 2

we use formula of simple interest

`I=p* r* t`

the replace our values

`\begin{gathered} I=(30000)*(0.055)*(4) \\ I=6600 \end{gathered}`

The amount of interest he will pay $6,600