Question

A business owner has two loans from the local bank. One of the loans is a three-year loan with a principal of $75,000 and an annual interest rate of 5%. The other is a one-year loan with a principal of $21,000 and an annual interest rate of 4.5%. What is the simple interest total for both loans for the first year

Answer 1

Answer:

$8475

Step-by-step explanation:

Therefore simple interest for the  loan from the local bank is a three year loan with a capital of $75000 and an annual interest of 5%. for the year will be

=PTR/100

=$\frac{75000×5×1}{100}$

Interest = $3750

Other loan is a one year loan with a principal of $21000 and annual interest of 4.5%

Hence interest of first year from this loan will be

=PTR/100

=$\frac{21000×4.5×1}{100}$

=$4725

Total interest for 1 year =$3750+4725=8475$

Answer 2

Answer:

Step-by-step explanation:

One loan from the local bank is a three year loan with a capital of $75000 and an annual interest of 5%.

Therefore simple interest form this loan for the year will be

⇒ Principal amount×Rate of interest×Time(in years)/100

⇒ 75000×5×1/100

Interest = $3750

Other loan is a one year loan with a principal of $21000 and annual interest of 4.5%

Therefore interest of first year from this loan will be

= Principal amount×Rate of interest×Time(in years)/100

= 21000×5×4.5/100

= $4725

Total interest of first year for both loans = 3750+4725 = $8475