Question

College students borrowed $6000 for 2 years at a simple interest of 12%. How much would they owe at the end of 2 years?

Answer 1

Answer:

Principal amount (P) = $6000

Rate (R) = 12%

Time = 2 years

Simple interest, I = P X R X T / 100

= 6000 X 12 X 2 / 100

= 144000 / 100

= 1440

=> Simple interest, I = $1440

Amount they would owe at the end of 2 years,

= P + I

= 6000 + 1440

= $7440