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Ron borrowed $30,000 to start up his consulting business. The loan had a simple interest rate of 5.5% for 4 years. Use the formula I=prt to find the amount of interest he will pay on the loan. I= interest, P=principal, R=rate (expressed as a decimal 0.055), T=time in years.

Answer :

we use formula of simple interest

[tex]I=p\times r\times t[/tex]

the replace our values

[tex]\begin{gathered} I=(30000)\times(0.055)\times(4) \\ I=6600 \end{gathered}[/tex]

The amount of interest he will pay $6,600

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