Question

Enrique takes out a student loan to pay for his college tuition this year.find the interest o the loan if he borrowed 2,500 at an annual interest rate of 6% for 15 years

Answer 1

Suppose the interest model payment follows a simple interest model. The amount of interest to be paid will be given by:I=(PRT)/100P=principle=$2500R=rate=6%T=time=15 years.
Therefore:S.I=(2500×6×15)/100=$2250

Answer 2

At simple interest rate:
1 year = 6% of 2500 = 0.06 x 2500 = 150
15 years = 150 x 15 = $2250

At compounded interest rate:
2500(1 + 0,06)^15 - 2500 = $3491.40