Question

a company borrows $90,000 for 7 years at a simple interest rate of 7.5%. Finf the intertest paid on the loan and the total amount paid
The intertest paid on the loam is $

Answer 1

simple interest uses the formula

\[I = \frac{Prn}{100}\]

where I = interest, r = interest rate and n = number of time periods

so you have P = 90000, r = 7.5 and n = 7

substitute these values into the formula to calculate the interest

amount repaid = Principal + Interest

hope it helps