Jake received a student loan for $12,000. He plans on paying off the loan in five years. At the end of five years, J. Cole have paid $3600 in interest. What is a simple interest rate on the student loan?

Question

Mathematics

Alonzo Terrell

12 July, 00:11

Jake received a student loan for $12,000. He plans on paying off the loan in five years. At the end of five years, J. Cole have paid $3600 in interest. What is a simple interest rate on the student loan?

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Answers (1)

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Lawson Evans · Answer 1

HI

Jake has paid capital + interest : 12 000 + 3 600 = 15 600

So : 12 000 * x = 15 600

x = 15 600 / 12 000

x = 15.6 / 12

x = 1.3

So Jake paid 30 % interest.