Question

Mark is going to purchase a $9,000 motorcycleHis bank will finance his purchase through an add-on interest loan. They will charge Mark 7% interest over 5 years

How much in interest ?

Answer 1

The interest to be charged is $ 3,150.

Explanation:

Since Mark is going to purchase a $ 9,000 motorcycle, and his bank will finance his purchase through an add-on interest loan, and they will charge Mark 7% interest over 5 years, to determine how much in interest will be charged, the following calculation has to be done:

9000 x 0.07 x 5 = X

630 x 5 = X

3150 = X

Therefore, the interest to be charged is $ 3,150.