Jake received a student loan for $12,000. He plans on paying off the loan in five years, and Jake will have paid $3,600 in interest. What is the simple interest rate on the student loan?

If Jake receive $12,000 and he will have to pay $3,600 as an interest rate, then he will need to give $12,000 + $3,600 = $15,600 overall. But to find the interest rate we need to find out how many percent of $12,000 is $3,600:
12,000 * x% = 3,600 12,000 * x/100 = 3,600 / * 100 (both sides) 12,000 * x = 360,000 / ÷ 12,000 (both sides) x = 30
Doublecheck:
12,000 * 30% = = 12,000 * 30/100 = = 12,000 * 3/10 = = 36,000/10 = = 3,600
So it's correct.
Answer: The interest rate is 30%.

Answered by SlowZasob | 2024-06-10

Using the simple interest formula I = PRT and given values, the simple interest rate on Jake's student loan is calculated to be 6% over five years.
To find the simple interest rate on Jake's student loan, we can use the formula for simple interest, which is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years the money is borrowed for.
From the question, we know that Jake's loan principal (P) is $12,000, the total interest (I) paid over five years is $3,600, and the time (T) is 5 years. We need to solve for the rate (R).

First, plug in the known values into the simple interest formula: $3,600 = $12,000 * R * 5 .
Next, simplify the equation by dividing both sides by the principal and time to solve for R: R = $3,600 / ($12,000 * 5) .
Divide to find R: R = $3,600 / $60,000 = 0.06 .
Convert the decimal to a percentage to find the interest rate: R = 0.06 * 100% = 6% .

Therefore, the simple interest rate on Jake's student loan is 6%.

Answered by Qwballon | 2024-06-24

Jake's simple interest rate on his student loan is 6%. This was found using the formula for simple interest. By plugging in the values of the principal, interest paid, and time, the calculation determined the rate as 6%.
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Answered by SlowZasob | 2024-12-18