The Hudson Company borrowed $250,000 to purchase machinery and agreed to pay 4% interest for six years on an installment note. Each note payment is $47,690. How much interest is Hudson paying over the life of the loan? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The total payment over six years is $47,690 * 6 = $286,140. The interest paid is the total payment minus the principal amount: $286,140 - $250,000 = $36,140.

The Hudson Company Borrowed $250,000 to Purchase Machinery and Agreed