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Select the correct answer. andrew has a four-year college loan for $20,000. the lender charges a simple interest rate of 5 percent. how much interest will he have to pay? simple interest = p × r × t a. $800 b. $4,000 c. $10,000

Answer :

Andrew has to pay his school loan debt of $4,000

How to determine school loan interest?

The interest rate on the loan is 5 percent.

So, [tex]\frac{5}{100}[/tex] ($20,000)

= $1.000

The loan term is 4 years.

So, (4) ($ 1.000) = $4.000

There are several options for this question:

  • Option a .$800. This choice is not appropriate because it does not match the amount of interest on the loan that must be paid by Andrew.
  • Option B. $4,000. This choice is right because it is in accordance with the amount of loan interest that must be paid by Andrew.
  • Option C. $10,000. This choice is not appropriate because it does not match the amount of interest on the loan that must be paid by Andrew.

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