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Snowcat [4.5K]
3 years ago
9

Chris is borrowing $8,500 for 5 years at 10%. payments are made on a monthly basis, which are determined using the add-on method

. How much interest will Chris pay on the loan if it is held for the full five year term
Business
1 answer:
mote1985 [20]3 years ago
4 0

Answer:

$4,250

Explanation:

Calculation for How much interest will be pay on the loan

Using this formula

Interest=Borrowed Amount*Percentage of Interest rate *Number of months

Let plug in the formula

Interest= $8,500*(10%/12) *60 months

Interest=$8,500*0.0083333*60 months

Interest = $4,249.9

Interest=$4,250(Approximately)

Note:5 years*12months will give us 60 months

Therefore the amount of interest that will be on the loan will be $4,250

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