A student obtained a personal loan to pay for college. The student borrowed $15,000 for 3 years at a rate of 10%. How much interest does the student owe?

To determine the amount of interest the student owes, we can use the simple interest formula:

$\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}$

Where:

• Principal (P) is the amount borrowed, which is $15,000.
• Rate (R) is the annual interest rate, which is 10% or 0.10 in decimal form.
• Time (T) is the duration of the loan in years, which is 3 years.

Now, substituting the given values into the formula:

$\text{Interest} = 15,000 \times 0.10 \times 3$

First, multiply the principal by the rate:

$15,000 \times 0.10 = 1,500$

Next, multiply the result by the time:

$1,500 \times 3 = 4,500$

Therefore, the student owes $4,500 in interest.