Suppose you borrowed $27,000 at a rate of 10.5% and must repay it in 5 equal installments at the end of each of the next 5 years.How much interest would you have to pay in the first year?
A) $2,353.05
B) $2,466.45
C) $2,749.95
D) $2,835.00
E) $2,948.40

Question

Quizplus · Accepted Answer

The interest for the first year is calculated simply as the initial loan amount multiplied by the interest rate: $27,000 * 10.5% = $2,835.00.

Suppose You Borrowed $27,000 at a Rate of 10