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What is the total intrest on a 4 year term loan of $1700 with a simple annual intrest of 8%

User Dpavlin
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1 Answer

2 votes

Answer: $544.

Explanation:

To calculate the total interest on a 4-year term loan with a simple annual interest rate of 8%, you can use the formula:

Total Interest = Principal × Interest Rate × Time

In this case:

Principal = $1700

Interest Rate = 8% = 0.08

Time = 4 years

Plugging in these values into the formula:

Total Interest = $1700 × 0.08 × 4

Total Interest = $544

Therefore, the total interest on the loan would be $544.

User Damen
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