Question

Jason borrows $8,000 to help pay for college. If the loan has an annual interest rate of 5.5%, how much interest would he owe at the end of two years, if he does not make any payments?

Answer 1

the interest that would he owe at the end of the two years is $880

Explanation:

The computation of the interest that would be owe at the end of two years is shown below

here we applied the simple interest formula

= Principal × rate of interest × time period

= $8,000 × 5.5% × 2

= $880

Hence, the interest that would he owe at the end of the two years is $880