Jake received a student loan for $12000. He plans on paying off the loan in 5 years, Jake will have paid $3600 in interest. What is the simple interest rate in the student loan?

6%

You want to calculate the interest on $12000 at 6% interest per year after 5 year (s).

The formula we'll use for this is the simple interest formula, or:

Where:

P is the principal amount, $12000.00.

r is the interest rate, 6% per year, or in decimal form, 6/100=0.06.

t is the time involved, 5 ... year (s) time periods.

So, t is 5 ... year time periods.

To find the simple interest, we multiply 12000 * 0.06 * 5 to get that:

The interest is: $3600.00