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15 November, 18:10

Enrique takes out a student loan to pay for his college tuition this year. Find the interest on the loan if he borrowed $2,500 at an annual interest rate of 6% for 15 years. (Show all work!)

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  1. 15 November, 20:51
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    Suppose the interest model payment follows a simple interest model. The amount of interest to be paid will be given by:

    I = (PRT) / 100

    P=principle=$2500

    R=rate=6%

    T=time=15 years.

    Therefore:

    S. I = (2500*6*15) / 100

    =$2250
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