Simple interest questions

Question

Aidan runs a car shop and needs $6000 to install a new car lift. He borrows the money on a 30 month personal bank note with his mother consigning the loan. The simple interest rate is 5.75. How much interest does he pay?

Answer 1

You would need a simple interest equation, which is: 

 

I = PRT, where I is the interest accrued, P is the principal, R is the interest rate, and T is the time in which the principal is borrowed. 

 

I = (6000)(0.0575)(2.5)