Kelsey takes out a loan for $6000 to start a business after high school. The bank charges her 8% interest for the loan. After 5 years how much interest will be added on to the loan?
Answers
Answer:
$2400
Step-by-step explanation
The answer of the question is:-
After 5 years the total interest will be added on to the loan is =
From the given data of the question, we have got that,
The total amount Kelsey took loan from the bank is = $6000 (I)
The interest rate of the bank is 8% (r)
The time being for that the loan is taken 5 years(t)
The total interest will be=(6000*8*5/100)$
= 2400$
So total amount of interest 2400$ will be added on the loan after end of 5 years.
Simple Interest:-
Simple interest is the cost of borrowing money that does not take compounding into consideration. In other words, just the principal is affected by simple interest.
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