Question

7. Dr. Drake is thinking about retirement and decides to sail around the world once he retires. He buys a sailboat for $125,000. If he borrows the money at an APR of 7.5% for five years, what will he pay in interest? $36,875.40 $46,875.30 $25,286.20 0 $17,388.80 11:23 PM 11/10/2020 f

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

$125000

APR = 7.5%

time = 5 years

interest = ?

Step 02:

interest = 125000 * 0.075 * 5

= 46875

The answer is:

He will pay $46875 in interest.