Question

Laura borrowed $105,000 at a rate of 5% simple interest for 12 years how much interest will Laura pay ?A.63,000B.168,000C.31,500D.231 000

Answer 1

Answer: $63,000

Laura borrowed $105,000

Let the principal be the money borrwed

rate = 5%

Time = 12 years

I = P x R x T / 100

Where I = interest, P = principal, r = rate, t = time

P= $105,000

r = 5%

t = 12 years

I = 105, 000 x 5 x 12 / 100

I = 105000 x 60/ 100

I = 1050 x 60

I = $63,000

The interest she will be paying is $63,000