Marcus borrows $3,000 from his local credit union, to be repaid with 3.5% interest over 4 years. What is the simple interest?
1 answer:
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Answer:
$41,875
<u>Extra</u>
a. $17,250 [($780,000 – $90,000) ÷ 40]
b. $366,000 [$780,000 – ($17,250 × 24 yrs.)]
c. $29,600 [($366,000 – $70,000) ÷ 10 yrs.]
Step-by-step explanation:
Step 1: Determine the cost of the asset
Step 2: Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount
Step 3: Determine the useful life of the asset
Step 4: Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount