Answer:
Total amount of interest = $3,125
Explanation:
Given:
Amount borrowed = $10,000
Interest per year = 6.25% = 0.0625
Number of year = 5 year
Find:
Total amount of interest
Computation:
Total amount of interest = Amount borrowed x Interest per year x Number of year
Total amount of interest = 10,000 x 0.0625 x 5
Total amount of interest = $3,125
