Question

You just borrowed $7,500 and are charged a simple interest rate of 8%. How much interest do you pay each year?

Answer 1

Answer:

Interest per year = $600

Explanation:

Given:

Amount invested = $7,500

rate of interest = 8%

Find:

Interest per year

Computation:

Interest per year = Amount invested x rate of interest

Interest per year = $7,500 x 8 %

Interest per year = $600