If $5,000 is borrowed at 9 percent to be paid back over one year, the interest on the loan is ________.

Name: If $5,000 is borrowed at 9 percent to be paid back over one year, the interest on the loan is ________.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

The interest on the loan can be calculated using the simple interest formula: Interest = Principal × Rate × Time. Here, Principal = $5,000, Rate = 9% or 0.09, and Time = 1 year. So, Interest = $5,000 × 0.09 × 1 = $450.

If $5,000 Is Borrowed at 9 Percent to Be Paid