What is the answer?

Question

A company borrows $52,000 for 5 years at a simple interest rate of 15.5%. Find the interest paid on the loan and the total amount paid.

Answer 1

The simple interest formula is I = Prt, where I is the interest, P is the principal, r is the interest rate per year, and t is the number of years.

 

 

I = 52,000 x 0.155 x 5 = $40,300

 

 

The company pays back 52,000 + 40,300 = $92,300.