Question

substitute the parts into formula then solve.
1 jenna borrows $8,000 for college at a yearly simple interest rate of 6%. she takes 15 years to pay off the loan and interest. how much interest does she pay? what is the total amount she pays for the loan and interest?

Explanation:

Step1: Recall simple interest formula

Simple Interest $I = P \times r \times t$ where $P = 8000$, $r = 0.06$, $t = 15$

Step2: Calculate interest

$I = 8000 \times 0.06 \times 15 = 7200$

Step3: Calculate total amount

Total = Principal + Interest = $8000 + 7200 = 15200$

Answer:

Interest: $7,200; Total amount: $15,200