Question

Miguel takes out a loan that adds interest each year on the initial amount. What is the interest Miguel will pay on the loan if he borrowed $5,000 at an annual interest rate of 45% for 15

years? (Use the formula I = Prt, where I is the interest, P is the principal or initial
investment, r. is the interest rate per year, and t is the number of years.)

Answer 1

We are given the principal amount (P), interest rate per year (r) and time (t). Using
the formula I = Prt, we can calculate the
interest on the loan. Here, P = $5000, r =
45% per annum and t = 15 years.So, we
have:I = P**t/100Putting the values, we get:l
= 5000*45*15/100= 33750Hence, the interest Miguel will pay on the loan if he borrowed $5,000 at an annual interest rate of 45% for 15 years is $33,750.