Jenna borrows $8,000 for college at a yearly simple interest rate of 6%. She takes
15 years to pay off the loan and interest. How much interest does she pay? What is
the total amount she pays?
To calculate the total amount of interest Jenna pays, we first calculate the annual interest she pays.
Annual interest = $8,000 * 6% = $480
Since Jenna takes 15 years to pay off the loan, the total interest paid over 15 years is:
Total interest = $480 * 15 years = $7,200
To find the total amount Jenna pays, we add the initial loan amount to the total interest paid:
Total amount = $8,000 + $7,200 = $15,200
Therefore, Jenna pays $7,200 in interest on top of the $8,000 loan amount, for a total payment of $15,200.