Jason is starting his own small business in
Albuquerque. He borrows ₱10,000 from
the bank at a 9% rate for 5 years. Find the
interest he will pay on this loan.

To calculate the interest on the loan, we can use the **simple interest formula**:

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

Where:  
- \(I\) = Interest  
- \(P\) = Principal amount = ₱10,000  
- \(r\) = Annual interest rate = 9% = 0.09  
- \(t\) = Time (in years) = 5 years  

### Step-by-Step Calculation:

\[
I = 10,000 \times 0.09 \times 5
\]

\[
I = 10,000 \times 0.45 = 4,500
\]

So, **the interest Jason will pay on the loan is ₱4,500**.

---

Would you like to know more details about how interest rates work or have any further questions?

### 5 Related Questions:
1. How would the interest change if the rate increased to 10%?
2. What is the total amount Jason has to repay, including the principal and interest?
3. How does **simple interest** differ from **compound interest**?
4. If Jason repays the loan in monthly installments, how can we calculate the monthly payments?
5. How would the interest change if the loan duration was 3 years instead of 5 years?

**Tip:** It is always beneficial to compare different types of interest (like compound interest) before borrowing money, as it can affect total repayment.

Jason is starting his own small business in Albuquerque. He borrows ₱10,000 from the bank at a 9% rate for 5 years. Find the interest he will pay on this loan.

Learn how to calculate the simple interest on a ₱10,000 loan borrowed at a 9% interest rate for 5 years. This guide covers key concepts like the simple interest formula, with a step-by-step breakdown of how to solve the problem. Suitable for students in Grades 5-7.

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