Question

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

Answer 1

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

Explanation:

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`