Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in 5 equal installments at the end of each of the next 5 years.How much interest would you have to pay in the first year?
A) $1,200.33
B) $1,263.50
C) $1,330.00
D) $1,400.00
E) $1,470.00

Question

Quizplus · Accepted Answer

The interest for the first year is calculated simply as 10% of the initial loan amount, which is 10% of $14,000 = $1,400.

Suppose You Borrowed $14,000 at a Rate of 10