Darien borrows $4265 to help pay for university tuition at an annual rate of 7%. He starts to pay for the simple interest loan in 4 years. How much interest will have been added to the loan at that time?

1 Answer
Mar 29, 2018

Answer:

#$1295# of interest will have been added to the loan in #4# years.

Explanation:

For simple interest, #I = Prt# where #I# is the simple interest, #P# is the principal, #r# is the rate (in percent) and #t# is the time (in years).

Plugging in #$4265# for #P#, #0.07# for #r#, and #4# for #t#:
#I = 4625 * 0.07 * 4#
#I = 323.75*4#
#I = 1295#