Question

A company borrows $91000 for 6 years at a simple interest rate of 9.5% Find the interest paid on the loan and the total amount paid The interest paid on the loan is $..?

Answer 1

Answer:

Explanation:

The amount borrowed is the prinicipal, P

P = $91000

Time, t = 6 years

Interet rate, r = 9.5%

The Interest (I) is calculated using the formula:

$\begin{gathered} I\text{ = }\frac{Prt}{100} \\ I\text{ = }\frac{91000\times9.5\times6}{100} \\ I\text{ = }51870 \end{gathered}$

The Interest paid on the loan = $51870