Question

You get a student loan from the Educational Assistance Foundation to pay for educational expenses as you earn your associate’s degree. You will be allowed 10 years to pay the loan back. Find the simple interest on the loan if you borrowed $3,600 at 8%.

Answer 1

1) the equation to obtain the  simple interest  is

I = C*i*n,where n is the time, C is capital and i is the rate of interest, then you have

I = 3600*0.08*10 = 2880, $ 2800  you will have to pay for the loan

Answer 2

Answer: $2,880

Step-by-step explanation:

We know that the formula to calculate simple interest is given by :-

$I=P\times r\times t$, where P is principal amount , t is time and r is the rate of interest.

Given : Time = 10 years;

Interest rate = 8% =0.08;

Principal = $3,600

Then , $I=3600\times 0.08\times 10$

$\Rightarrow\ I= \ \ 2,880$

Hence, the amount of simple interest = $2,880