Problema Solution
A company borrows $92,000 for 4 years at a simple interest rate of 7.5%. What is the total amount of interest paid on the loan?
Answer provided by our tutors
let
P = $92,000 is the principal
t = 4 years
r = 0.075 or 7.5% the annual rate
I = the interest
I = P*r*t
I = 92,000*0.075*4
I = $27,600
the total amount of interest paid on the loan is $27,600.