Regina borrowed 5,000 for 4 years at 7% simple interest rate how much interest did she pay?

To calculate the interest paid on a loan using simple interest, you can use the formula:

\[
\text{Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (PHP 5,000).
- \( r \) is the annual interest rate (7% or 0.07).
- \( t \) is the time the money is borrowed for (4 years).

Substituting the given values into the formula:

\[
\text{Interest} = 5,000 \times 0.07 \times 4
\]

\[
\text{Interest} = 5,000 \times 0.28
\]

\[
\text{Interest} = 1,400
\]

So, Regina paid **PHP 1,400** in interest over 4 years.

Would you like more details or have any questions? Here are some related questions you might find useful:

1. What would be the total amount Regina has to repay after 4 years?
2. How much would the interest be if the rate were 10% instead?
3. How does simple interest differ from compound interest in this scenario?
4. What would be the interest if Regina borrowed the money for 6 years instead?
5. How much interest would be paid if the principal were increased to PHP 10,000?

**Tip:** Simple interest is straightforward to calculate, but it doesn't take into account the effect of compounding, which can significantly increase the amount of interest paid over time.

Learn how to calculate simple interest on a loan using the formula: Interest = P * r * t. In this example, Regina borrowed PHP 5,000 at a 7% interest rate for 4 years, paying PHP 1,400 in interest over the loan period. Suitable for students in Grades 7-9.

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