Question

Tony took out a loan for 7000 that has a intrest rate of 7.5% compounded annually after 15 years how much will the total loan amount be After 15 years how much will tony pay in intrest

Answer 1

$7875

Explanation:

Interest is calculated by the formula: I = Prt

I (interest)

P (principle)

r (rate)

t (time)

Substitute

I = (7000)(0.075)(15)

I = 7875

Thus, our interest is $7875