Question

You want to start your own business so you borrow $50,000 from the bank to pursue your dreams. You borrow it for 5 years at 3.2% simple interest rate. What is the interest INTEREST owed?

Answer 1

$8000

Explanation:

`I=PRT` (I = interest, p = principal, r = interest rate, t = time. This only applies to simple interest)

`I=\$50000*3.2\%*5` (assuming that it is
`3.2\%` p.a)

`I=\$8000`

∴ The interest owed is $8000.

Hope this helps :)