Jake received a student loan for $12,000. He plans on paying off the loan in 5 years. At the end of 5 years, Jake will have paid $3,600 in interest. What is the simple interest rate on the student loan?
The rate of Simple Interest is
The formula for calculating Simple Interest is:
To determine the rate of Simple Interest on Jake's student loan, we fill in the known variables.
Multiply both sides by
Divide both sides by