Question

Find the amount (in $) of interest on the loan. where principal = $70,000

, Rate = 5%, Time = 6.5 yeras.

Answer 1

The total amount of interest on a $70,000 loan with a 5% interest rate over 6.5 years is $22,750, calculated using the simple interest formula.

Step-by-step explanation:

To find the amount of interest on the loan, we use the formula for simple interest, which is:

Interest = Principal × rate × time

In this case, the principal is $70,000, the rate is 5% (or 0.05 in decimal form), and the time is 6.5 years. Plugging these values into the formula, we get:

Interest = $70,000 × 0.05 × 6.5

Calculating this, we find that the simple interest is:

Interest = $22,750

The total amount of interest on the loan is $22,750.