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What is the amount of interest that is paid on a loan when the principal is 5000 the interest rate is 7 percent per year and the time is 2 years?

Ramon Kelly

in Student Loans

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Brandon Scott on April 4, 2019

The Simple interest I=Prt = (5000)(0.07)(2) = $700 . Compound interest: A=P(1+r) t = 5000(1.07) 2 = 5000(1.1449) = $5,724.50; I=A-P = 5,724.50 - 5000 = $724.50


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