In order to start a small business, a student takes out a simple interest loan for $6000 for 3 months at a rate of 6.25%. How much interest must the student pay?

1 Answer
May 29, 2017

The student must pay back $9375 interest to the bank.

Explanation:

I = P xx R xx T

If you are unfamiliar with this equation,

"Interest" = "Price" xx "Rate (as a decimal)" xx "Time (in years)"

I = 6000 xx 6.25 xx 0.25

I = $9375

therefore The student must pay back $9375 interest to the bank.