What is the interest on a five-year loan of $13,950 at a 5.8% rate of interest?

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Answer 1 · 2016-02-21T09:37:46

$color(blue)($4,045.50)$

As,

$I = PRT$

where:

$I = Interest$
$P =$ $Pri$ $n$ $cipal$
$R = Rate$
$T = Time$

Plugging all given to the Formula,

as $R=5.8%$ , we can convert it to decimal by simply moving the decimal point 2 places to left,

$5.8 = 0.058$

#I = ($13,950)(0.058)(5 years)

$I = $4,045.50$