To find the amount of interest the student must pay, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest
P = Principal amount (loan amount)
r = Interest rate per period
t = Number of periods (months)
Plugging in the given values:
P = $3000.00
r = 7.50% or 0.075 (converted to decimal)
t = 66 months
I = $3000.00 * 0.075 * 66 = $1,347.00
Therefore, the student must pay $1,347.00 in interest for the loan.
In order to start a small business, a student takes out a simple interest loan for $3000.003,000.00
for 66
months at a rate of 7.507.50%.
In order to start a small business, a student takes out a simple interest loan for $3000.003,000.00
for 66
months at a rate of 7.507.50%.
How much interest must the student pay?
For simple interest:
A = P (1+ r*t)
I = P*r*t
1 answer
1 answer