Answer:
- $19,980 in interest
- $93,980 total repaid
Step-by-step explanation:
The amount of interest is computed using the formula ...
I = Prt
where P is the principal borrowed ($74,000), r is the annual interest rate (0.135), and t is the number of years (2). Filling in the numbers and doing the arithmetic, we have ...
I = $74,000×0.135×2 = $19,980 . . . interest on the loan
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The amount repaid is the sum of the original amount borrowed and the interest:
$74,000 +19,980 = $93,980 . . . . total amount repaid
