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19 December, 13:10

The Rent-to-Own Store has a six-year, interest-only loan at 7.6 percent interest. The firm originally borrowed $115,000. How much will the firm pay in total interest over the life of the loan?

A. $32,451.13

B. $53,666.67

C. $47,500.00

D. $69,000.00

E.$52,440.00

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Answers (1)
  1. 19 December, 13:16
    0
    correct option is E.$52,440.00

    Explanation:

    given data

    time = 6 year

    interest rate = 7.6 percent

    principal amount = $115,000

    to find out

    total interest over the life of the loan

    solution

    we get here interest that is express as by interest formula that is

    interest = principal * rate * time ... 1

    put here value and we get interest

    interest = $115,000 * 7.6% * 6

    interest = $115,000 * 0.076 * 6

    interest = $52,440.00

    so correct option is E.$52,440.00
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