You borrow $10,000 and will pay back the entire amount in 10 years. You are charged 6 percent interest per year. How much interest do you pay on this loan?
A) $6,000.00
B) $7,715.61
C) $7,908.48
D) $11,193.97

Question

Quizplus · Accepted Answer

The interest is calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = $10,000, r = 0.06, n = 1, t = 10. The total amount A is $17,908.48, so the interest paid is $17,908.48 - $10,000 = $7,908.48.

You Borrow $10,000 and Will Pay Back the Entire Amount