What is the interest on a five-year loan of $13,950 at a 5.8% rate of interest?

1 Answer
Feb 21, 2016

#color(blue)($4,045.50)#

Explanation:

As,

#I = PRT#

where:

#I = Interest#
#P =# #Pri##n##cipal#
#R = Rate#
#T = Time#

Plugging all given to the Formula,

as #R=5.8%#, we can convert it to decimal by simply moving the decimal point 2 places to left,

#5.8 = 0.058#

#I = ($13,950)(0.058)(5 years)

#I = $4,045.50#