485,877 views
44 votes
44 votes
What is the interest you will pay if you borrowed $120 at 5% interest for 6 years?

User Slooker
by
2.5k points

2 Answers

25 votes
25 votes

Answer:

Hope this helps!

Explanation:

We will need the loan payment formula:

That formula is really complex and we expect you to solve it.

Your monthly payment would be $1.93 per month for 6 years making the TOTAL loan cost 1.93 * 12 * 6 = 138.96

Since the principal you borrowed is $120 the total interest =

(138.96 minus 120.00) which equals $18.96

User Igal Zeifman
by
2.6k points
12 votes
12 votes

Answer:

The answer is 36

Explanation:

120*0.05=6

6.6=36

User Jamison Dance
by
2.9k points