Jake received a student loan for $12,000. he plans on paying off the loan in five years, jake will have paid $3600 in interest. what is the simple interest rate on the student loan?

If Jake receive $12,000 and he will have to pay $3,600 as an interest rate, then he will need to give $12,000 + $3,600 = $15,600 overall. But to find the interest rate we need to find out how many percent of $12,000 is $3,600:

12,000 * x% = 3,600

12,000 * x/100 = 3,600 / * 100 (both sides)

12,000 * x = 360,000 / : 12,000 (both sides)

x = 30

Doublecheck:

12,000 * 30% =

= 12,000 * 30/100 =

= 12,000 * 3/10 =

= 36,000/10 =

= 3,600

So it's correct.

Answer: The interest rate is 30%.