Question

If a company needed to borrow $14,500,000, how much more would it pay in one year

of simple interest if it borrowed the money in 2001 as opposed to 2002?

Answer 1

To find out how much more a company would pay in one year of simple interest in 2001 as opposed to 2002, we need the specific interest rates for those years. The formula for simple interest (I = PRT) is applied to make the comparison.

Step-by-step explanation:

The student's question involves comparing simple interest costs for borrowing money in different years with presumably different interest rates. Without knowing the specific interest rates for 2001 and 2002, we cannot calculate the exact difference in the interest payments for the $14,500,000 loan. The question requires an understanding of the simple interest formula I = PRT, where 'I' is the interest, 'P' is the principal amount borrowed, 'R' is the annual interest rate, and 'T' is the time in years. To answer the student's question, we would need the interest rates for both years to calculate and compare the amount paid in interest.