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If a firm borrows ​$8 comma 000 from households at an annual interest rate of 6 ​percent, how much will the firm pay in interest payments each​ year?
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If a firm borrows ​$8 comma 000 from households at an annual interest rate of 6 ​percent, how much will the firm pay in interest payments each​ year?

User BekaKK
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1 Answer

3 votes

Answer:

The firm will pay 480 dollars each year as interest payment.

Step-by-step explanation:

The interest amount is calculated by multiplying the rate of interest with the amount borrowed. In problem loan is 8,000 dollars and rate of interest is 6%, so the interest amount will be calculated as follow

Interest payment = 8,000 * 6% = 480 dollars

User Grll
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