Question

John goes to the bank to get a $15,000 loan.The loan has a simple interest rate of 6% and is 4 years long.What is the TOTAL amount John has to pay?

Answer 1

The total amount John has to pay in repaying the loan and interest is $18,600

What makes up the total amount John has to pay?

The total amount that John has to pay comprises of the loan principal of $15,000 and the interest on the loan which is computed at the  simple interest rate of 6% for the loan duration of 4 years

I=PRT

I=interest for 4 years=unknown

P=loan principal=$15,000

R=interest rate=6%

T=number of years of loan=4

I=$15,000*6%*4

I=$3,600

A=P+I

A=$15,000+$3,600

A=$18,600

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