Question

Maya's roof was leaking so she borrowed $12,000 from the bank for repairs it is a five-year loan and she's being charged simple annual interest at a rate of 7.5% how much interest can Maya expect to pay over the life of the loan

Answer 1

Answer:Maya will expect to pay $ 986 in just interests for the Loan

Step-by-step explanation:

I will use my last answer and change the numbers

Simple interest is applied just to the principal loan.

Because the question is just for the Simple interest we can use the formula to find the interest:

P*i*n

Where P is the principal (loan) = $ 12,000

i is the simple interest rate: 7.5%

n is the Period of time= 5 years.

Just Replace.

Therefore the simple interest is: P*i*n = $ 12,000*7.5%*5 = $ 4,500