James borrows $4,200 to pay his college tuition. He signs a 5-year simple interest loan. lf the monthly payments are $78.40, what is the interest rate on the loan?
Since there are 12 months in a year you have to multiply it by your monthly payments which is 78.40 12×78.40=940.8 Since that is only a year payment you have to multiply it by your loan which is 5 years 940.8×5=4,704 So the loan is $4,704
