Question

Mr. Montoya borrowed $11,550 from the bank to fix his roof. The bank set up the loan for 5.6% simple interest over 10 years. How much interest will he pay on the ten year loan?

Answer 1

Answer: Interest to be paid on the loan will be $6,468

Explanation:

Isimple interest = Principal x Rate x Time

From the information given,

Principal = $11,550

Rate = 5.6% = 5.6/100 = 0.056

Time = 10years

Slot the values into the formula;

Interest= $11,550 x 0.056 x 10

=$6,468

Interest to be paid on the loan will be

= $6,468