Question

paul borrowed $6,000 for 5 years from a loan company with a 12% simple interest rate. how much interest did he pay on this loan? $? hint: i = prt

Explanation:

Step1: Identify values for P, R, T

Principal \( P = \$6000 \), Rate \( R = 12\% = 0.12 \), Time \( T = 5 \) years.

Step2: Apply simple interest formula \( I = PRT \)

Substitute values: \( I = 6000 \times 0.12 \times 5 \).
Calculate: \( 6000 \times 0.12 = 720 \), then \( 720 \times 5 = 3600 \).

Answer:

\( 3600 \)