A $5000 loan carrying an add-on interest rate of 15 percent and repayable over seven years would result in a total repayment, including interest, of $ 10 250.

Question

Quizplus · Accepted Answer

To calculate the total repayment, we first need to add the interest amount to the loan amount, which gives us:

Total repayment = Loan amount + Interest amount

Loan amount = $5000

Interest amount = 15% of $5000 = $750

Total repayment = $5000 + $750 = $5750

However, the loan is repayable over seven years, which means we need to multiply this amount by the number of years:

Total repayment = $5750 x 7 = $40,250

This is not the same as the given amount of $10,250. Therefore, the answer is false.

A $5000 Loan Carrying an Add-On Interest Rate of 15