Question

Osvaldo wants to go to school to be a reporter. He takes out a loan for $140,000. The interest rate on this will be 3% for 4 years. What would the interest be that Osvaldo would have to pay?

Answer 1

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Answer:

$16,800

Explanation:

The interest is computed using the formula ...

I = Prt

where P is the loan amount, r is the annual rate, and t is the number of years.

Filling in your given information, you have ...

I = $140,000 × 0.03 × 4 = $16,800

Osvaldo would have to pay $16,800 in interest.