Dave has a three-year college loan for $10,000. The lender charges a simple interest rate of 6 percent. How much interest will he have to pay?

Question

koffeemonster · Answer

Hello, Jacey! This would be a mathematic question, but I will help anyway! c:
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Provided information:
Principal: $10,000
Rate: 0.06
Time: 3 years
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SI = P * R * T
SI = 10,000 * 0.06 * 3
10,000 multiplied by 0.06 equals 600.
600 multiplied by 3 equals 1,800.

Answer: $1,800.
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Alternative:
Months in total of three years: 36
Principal: $10,000 
Rate: 6%

$10,000 Principal at 6% annual interest rate is equivalent to a monthly interest payment of $50.

$50*36
50 multiplied by 36 equals 1,800.

Answer: $1,800.
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The amount of interest Dave would have to pay would be a total of $1,800.