Question

Due to unexpected circumstances, you take out a loan for $5,000 to pay for a lawyer. You agree to pay it back over the next 5 years at a rate of 22.5% (because your credit score is really really low). At the end of the 5 years, how much did this "unexpected circumstance" end up costing you in all?

Answer 1

P=$5000
R=22.5
T=5yrs
I=PxRxT= 5000x22.5x5=50x22.5=1125x5=5625
———= ———————
100 =. 100
The answer is $5625