You just borrowed $17,500 from the bank to use in your business. The loan terms require you to pay the interest annually with the entire principal due in four years. The interest rate is 9.5%. How much
Will you pay to the bank in year four of the loan?

Question

Quizplus · Accepted Answer

The correct answer is A. The total amount of interest paid over the four years is $17,500 x 0.095 x 4 = $6,650. The total amount paid to the bank in year four is $17,500 + $6,650 = $24,150.

You Just Borrowed $17,500 from the Bank to Use in Your