Question

A company borrows ​$64,000 for 2 years at a simple interest rate of 5.5​%. Find the interest paid on the loan and the total amount paid.

Answer 1

interest paid = $7040

total amount paid = $71 040

Explanation:

Total amount paid (use simple interest formula)

64 000 x ( 1 + 5.5% x 2 ) = $71 040

Interest paid ( total amount paid - initial amount)

$71 040 - $64 000 = $7040