Sally takes a loan of $2,500 at a 6% simple rate for 5 years. How much interest will be paid for 3 years?
(Simple Interest Formula is I = prt)
First, we need to calculate the total interest paid over the entire 5-year period using the formula:
I = prt
I = 2,500 x 0.06 x 5
I = $750
So over 5 years, Sally will pay $750 in interest.
To find out how much interest will be paid for just 3 years, we can use the same formula but adjust the time period:
I = prt
I = 2,500 x 0.06 x 3
I = $450
Therefore, Sally will pay $450 in interest for 3 years.