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zheka24 [161]
3 years ago
6

Suppose you borrowed $10,000 via a pure discount loan at 6.25 percent

Advanced Placement (AP)
1 answer:
PolarNik [594]3 years ago
4 0

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

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