Question

Joshua uses the Small Business Administration (SBA) Loan Program to obtain a loan to help expand his vending machine business. Joshua borrows $25,000 for 2 years with a simple interest rate of 1.5%. Determine the amount of money Joshua must repay the SBA after 2 years.

Answer 1

Answer:

Step-by-step explanation:

Alright, lets get started.

Principal amount Joshua borrowed, P = $ 25000

rate of interest, r = 1.5 %

time, t = 2 years

simple interest = $\frac{P*r*t}{100}$

simple interest = $\frac{25000*1.5*2}{100}=750$

Means $ 750 will be the interest of Joshua's loan.

So, Joshua needs to repay the SBA = $25000+750=25750$

Hence, Joshua will repay $ 25750 to SBA after two years.   :   Answer

Hope it will help :)