# Jake received a student loan for $12,000 he plans on paying off a loan in five years.At the end of five years,Jake will have paid 3,600 in interest.What is the simple interest rate on the student loan? ##### 1 Answer Jan 25, 2018 Rate of interest color(green)(r = 6%) #### Explanation: I = Interest, p = Principal, n = Period in years, r = Rate of Interest % Given I =$3,600, p = $12,000, n = 5 years $I = \frac{p \cdot n \cdot r}{100}\$ for simple interest.

r = (100 * I) / (p * n) = (cancel(100 * 3600) 30) / (cancel(12000) * 5) %

color(green)(r = (cancel(30) 6) / (cancel(5)) = 6%)