ABC Bank issues bank loans and collects interest once a year on the loans. The bank collected $900 in interest on a bank loan for the year. The interest rate on the loan was 6% per year. How much was the amount of the loan issued by the bank?

To determine the amount of the loan issued by the bank, we will use the simple interest formula. Here's how to solve the problem step by step.

### Step 1: Identify the given information.
- **Interest collected (I):** $900
- **Interest rate (r):** 6% per year or 0.06
- **Time (t):** 1 year

### Step 2: Use the simple interest formula.
The formula for simple interest is:

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest,
- $ P $ is the principal (the loan amount we need to find),
- $ r $ is the interest rate,
- $ t $ is the time.

### Step 3: Plug in the values and solve for $ P $.

\[
900 = P \times 0.06 \times 1
\]

\[
P = \frac{900}{0.06}
\]

\[
P = 15,000
\]

### Final Answer:
The amount of the loan issued by the bank was **$15,000**.

Would you like further explanation or have any additional questions?

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**Further questions:**
1. How does changing the interest rate affect the loan amount for the same interest collected?
2. What would be the interest collected if the loan amount was $20,000 at 6% for 1 year?
3. How does simple interest differ from compound interest in terms of growth over time?
4. Can the loan amount be calculated if the interest collected and time period are known but not the rate?
5. How is the formula for simple interest derived?

**Tip:** Always ensure the interest rate is converted to a decimal before performing calculations (e.g., 6% becomes 0.06).

Learn how to calculate the amount of loan issued by ABC Bank when $900 interest is collected on a 6% interest rate for 1 year. Step-by-step solution provided.

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