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College loans have an interest rate of 4.45%. If Nico needs to borrow $8,000 for his first year ofcollege, how much interest will he pay after one year?



Answer :

principal is

p = 8000$

rate of interest (r) = 4.45 %

time (t) = 1 year

now the formula for simple interest is

[tex]SI=\frac{p\times r\times t}{100}[/tex][tex]SI=\frac{8000\times4.45\times1}{100}=356\text{ }[/tex]

so Nico will pay 356 $ after one year as interest.

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