Question

Hayden plans to take a loan out to buy his Ultimate PC

Gaming Desktop. He will borrow $6,200 from the bank
at a rate of 3.5% annually. The length of the loan will be
5 years. How much interest will Hayden have to pay on
the loan? What is the total that Hayden will have to pay
the bank back?
Give step by step plz

Answer 1

The rate of simple interest for loan was 8%

Step-by-step explanation:

Given

Principal amount = p = $6200

Time = t = 1 year

Amount after interest = $6696

We have to calculate the amount of interest first

So,

Interest amount =I= Amount after interest - principal amount

= 6696-6200

=$496

The formula for simple interest is:

The rate of simple interest for loan was 8%

Keywords: Simple interest, percentage

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