Question

You would like to start your own business in Hempstead. You borrow

$10,000 form the bank at a 9% rate for 5 years. How much interest
will you pay on this loan?

Answer 1

$ 4,500.00

Explanation:

I = $ 4,500.00

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 9%/100 = 0.09 per year,

then, solving our equation

I = 10000 × 0.09 × 5 = 4500

I = $ 4,500.00

The simple interest accumulated

on a principal of $ 10,000.00

at a rate of 9% per year

for 5 years is $ 4,500.00.