Question

College loans have an interest rate of 4.45%. If Nico needs to borrow $8,000 for his first year ofcollege, how much interest will he pay after one year?

Answer 1

principal is

p = 8000$

rate of interest (r) = 4.45 %

time (t) = 1 year

now the formula for simple interest is

`SI=(p* r* t)/(100)`
`SI=(8000*4.45*1)/(100)=356\text{ }`

so Nico will pay 356 $ after one year as interest.