To finance her community college education, Sarah takes out a loan for \( \$ 4200 \). After a year Sarah decides to pay off the interest, which is \( 5 \% \) of \( \$ 4200 \). How much will she pay?

To find the interest Sarah needs to pay on her loan, you can calculate \( 5\% \) of \( \$ 4200 \). This is done by multiplying \( 4200 \) by \( 0.05 \): \[ \text{Interest} = 4200 \times 0.05 = 210 \] So, Sarah will pay \( \$ 210 \) in interest after one year. For anyone considering a loan, it's important to check the interest rates upfront and understand how they accumulate over time. Sarah's situation is a reminder that while loans can help with education, they also come with a cost that needs to be managed carefully!