You borrow $3,500 and will pay back the entire amount in 5 years. You are charged 9% interest per year. How much interest do you pay on this loan?
A) $1,885.18
B) $1,907.35
C) $1,959.02
D) $2,106.81

Question

Quizplus · Accepted Answer

The correct answer is A. The total interest paid on the loan is $1,885.18. This is calculated as follows:Interest = Principal x Rate x TimeInterest = $3,500 x 0.09 x 5Interest = $1,885.18

You Borrow $3,500 and Will Pay Back the Entire Amount