Question

Pedro has a student loan of $62,845. This loan has a simple interest rate of 7% per year. What is the amount of interest that Pedro will be charged on this loan at the end of the year?​

Answer 1

I believe it would be $4,399.15 because if you use the formula I=P*R*T
P=62,845
R=0.07 or 7%
T=1 year period
So overall your equation is 62845*0.07*1=$4,399.15
Now at this point the interest is added onto the principal amount to figure out some new amount after one year so:
62845.00+4399.15=$67,244.15