a company borrows $98,000 for 7 years at a simple interest rate of 5.5%. find the interest paid on the loan…

a company borrows $98,000 for 7 years at a simple interest rate of 5.5%. find the interest paid on the loan and the total amount paid. the interest paid on the loan is $

a company borrows $98,000 for 7 years at a simple interest rate of 5.5%. find the interest paid on the loan and the total amount paid. the interest paid on the loan is $

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$98000$, $r = 5.5%=0.055$, and $t = 7$ years.

Step2: Calculate the interest

Substitute the values into the formula: $I=Prt=98000\times0.055\times7$. First, $98000\times0.055 = 5390$. Then, $5390\times7=37730$.

Step3: Calculate the total amount

The total amount $A$ paid is the sum of the principal $P$ and the interest $I$. So $A=P + I=98000+37730 = 135730$.

Answer:

The interest paid on the loan is $$37730$. The total amount paid is $$135730$.