Question

If Jose took out a $7,500 loan on a 5-year payment plan and was charged 4.3% interest, what is the total interest?

Answer 1

Given:

Principal = $7,500

time = 5 years

rate = 4.3% = 0.043

Step 1: Write out the formula

`\text{Interest = Principal x rate x time}`

Step 2: Substitute the parameters into the equation

`\begin{gathered} \text{Interest = 7500 x 5 x 0.043} \\ \text{Interest = \$1612.5} \end{gathered}`

Interest = $1612.5