Tonya took out a loan to help pay for her house. She borrowed $70,000 for 15 years at a yearly simple interest rate of 5%. How much interest will she end up paying the bank?
A. $525,000
B. $52,500
C. $525
D. $10,500

Question

Tonya took out a loan to help pay for her house. She borrowed $70,000 for 15 years at a yearly simple interest rate of 5%. How much interest will she end up paying the bank?
	A. 	$525,000
	B. 	$52,500
	C. 	$525
	D. 	$10,500

mathstudent55 · Answer

The formula for simple interest is:

I = Prt

where 
I = interest
P = principal amount (amount borrowed or deposited)
r = annual rate of interest
t = time in years

Just substitute the amounts you have into the formula, and calculate I.

anonymous · Answer

its B 52,500