Question

Your family plans to start a small business in your neighborhood. Your father borrows $10,000 from the bank at an annual interest rate of 8% rate for 36 months. What is the amount of interest he will pay on this loan?

Answer 1

Explanation:

12,400

Answer 2

12,400

Explanation:

36 months /12 months = 3 years

3 years x .08 rate = .24 interest + 1 loan = 1.24 loan

1.24 x 10,000 = 12,400