To finance her community college education, Sarah takes out a loan for $2900. After a year, she decides to pay off the interest, which is 5% of $2900. How much will she pay?

You want to calculate the interest on $2900 at 5% interest per year after 1 year(s).The formula we'll use for this is the simple interest formula, or: I =*P *x *r *x t Where: P is the principal amount, $2900.00. r is the interest rate, 5% per year, or in decimal form, 5/100=0.05. t is the time involved, 1....year(s) time periods. So, t is 1....year time periods. To find the simple interest, we multiply 2900 × 0.05 × 1 to get that: The interest is: $145.00

Answered by charmed0862 | 2024-06-10

Sarah will pay $145 in interest after one year on her loan of $2900 at a 5% interest rate.
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Answered by charmed0862 | 2024-09-26