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

Answer:

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.