The total interest on a 5 year 5.2% loan with a principal of $10,000 is 10,000 $\times$ 0.052 $\times$ 5 = $2,600.

Question

Quizplus · Accepted Answer

The formula provided seems to be an attempt to calculate simple interest, which is Principal * Rate * Time. The correct calculation for a 5-year loan at 5.2% interest on a principal of $10,000 should be $10,000 * 0.052 * 5 = $2,600, which is correct, but the formula notation in the question is unclear and incorrectly formatted.

The Total Interest on a 5 Year 5 ×\times× 0052 ×\times× 5 = $2,600

The Total Interest on a 5 Year 5 $\times$ 0052 $\times$ 5 = $2,600