Question

Juan borrows $2,500 from the bank, at 6% simple interest for 5 years. How much is Juan going to pay in interest?

Answer 1

Answer:

r = R/100 = 3.875%/100 = 0.03875 per year. The total amount accrued, principal plus interest, from simple interest on a principal of $10,000.00 at a rate of 3.875% per year for 5 years is $11,937.50.