Question

The Galindo family plans to start a small business in our neighborhood. The father borrows $10,000 from the bank at an annual interest rate of 7.5% rate for 42 months. What is the amount of interest he will pay on this loan?(worth 80 points)

Answer 1

• $2625

Explanation:

• Loan amount = $10000
• Interest rate = 7.5% (assumed simple)
• Time = 42 months

Interest amount is:

• $10000*42*(7.5/12)/100 = $2625

(note 7.5/12 is the monthly interest rate)