Question

Mrs. King takes out a personal loan for $10,000 at a yearly simple interest rate of 9.1%. How much total interest will she owe at the end of 6 years?

Answer 1

$5,460

Explanation:

Given that :

Loan taken = principal (p) = $10,000

Simple Interest rate (r) = 9.1% = 0.091

Interest owed at the end of 6 years = t

Simple interest = (principal * rate * time)

Interest owed = 10,000 * 0.091 * 6

Interest owed = 910 * 6

Interest owed = $5,460