lindsay borrowed a certain amount of money for 5 years at an annual simple interest rate...

lindsay borrowed a certain amount of money for 5 years at an annual simple interest rate of 6.2%. if the maturity value oj the loan was $4,135, what was the total amount interest she paid on the loan?

Solutions

Expert Solution

Amount = Principal + (Principal * Rate * Time)

$4,135 = Principal + (Principal * 0.062 * 5)

$4,135 - Principal = 0.31Principal

$4,135 = 0.31Principal + Principal

$4,135 = 1.31Principal

Principal = $4,135 / 1.31

Principal = $3,156.49

Total amount interest = Amount - Principal

Total amount interest = $4,135 - $3,156.49

Total amount interest = $978.51

jeff jeffy answered 1 year ago

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