Question

If $10,500 is borrowed for 5 years at an annual simple interest rate of 1.73%, how much interest will be paid if the entire loan is paid off at the end of the fifth year? Enter the answer in dollars and cents, and round to the nearest cent, if needed. Do not include the dollar sign. For example, if the answer is $0.61, only the number 0.61 should be entered.

Answer 1

Explanation:

So, yearly $2100 is paid, plus the 1.73% interest, so 1.73% interest is $2136.33every year interest stacks on itself so youll take 1.73% of the year 1 total with interest.

Year 1 total: $2136.33

Year 2 total:$2173.29

Year 3 total:$2210.89

Year 4 total:$2249.14

Year 5 total:$2288.05

Total Paid After 5 years:$11057.70

Year 1 total interest:$36.33

Year 2 total interest:$36.96Year 3 total interest:$37.60Year 4 total interest:$38.25Year 5 total interest:$38.91

Total Interest paid after 5 years:$188.05