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26 November, 21:30

College students borrowed $6000 for 2 years at a simple interest of 12%. How much would they owe at the end of 2 years?

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  1. 26 November, 21:43
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    Principal amount (P) = $6000

    Rate (R) = 12%

    Time = 2 years

    Simple interest, I = P X R X T / 100

    = 6000 X 12 X 2 / 100

    = 144000 / 100

    = 1440

    => Simple interest, I = $1440

    Amount they would owe at the end of 2 years,

    = P + I

    = 6000 + 1440

    = $7440
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