Question

Joshua uses the Small Business Administration (SBA) Loan Program to obtain a loan to help expand his vending machine business. Joshua borrows $25,000 for 2 years with a simple interest rate of 1.5%. Determine the amount of money Joshua must repay the SBA after 2 years.

Answer 1

Explanation:

Alright, lets get started.

Principal amount Joshua borrowed, P = $ 25000

rate of interest, r = 1.5 %

time, t = 2 years

simple interest =
`(P*r*t)/(100)`

simple interest =
`(25000*1.5*2)/(100)=750`

Means $ 750 will be the interest of Joshua's loan.

So, Joshua needs to repay the SBA =
`25000+750=25750`

Hence, Joshua will repay $ 25750 to SBA after two years. : Answer

Hope it will help :)