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26 July, 11:42

If $195,000 is borrowed for 9 years at an annual simple interest rate of 12.7%, how much interest will be paid if the entire loan is paid off at the end of the ninth year?

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  1. 26 July, 11:59
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    The unknown is the interest.

    The givens are the principal=$195,000, time = 9 years and the rate=12.7%

    The formula is I=PRT where I is interest, P=principal, R=rate and T=time

    I=$195,000*12.7%*9=$222,885

    Therefore the interest will be $222,885
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