1.5 Practice
Alekssa Galvez Garcia
Calculating simple interest:
interest = \(P \cdot r \cdot t\)
P = outstanding principal
r = interest rate
t = number of years
Zain
His roommate, Zain, uses $3,500 in subsidized loans and
$2,000 in unsubsidized loans, the maximum amount a freshman
can borrow from the federal government this year. The interest
rate for both is 6.53%.
How much interest does Zain accrue during that year?
How much is Zain's balance after one year?
dollars