If $10,500 is borrowed for 5 years at an annual simple interest rate of 1.73%, how much interest will be paid if the entire loan is paid off at the end of the fifth year?
So, yearly $2100 is paid, plus the 1.73% interest, so 1.73% interest is $2136.33every year interest stacks on itself so youll take 1.73% of the year 1 total with interest.
Year 1 total: $2136.33 Year 2 total:$2173.29 Year 3 total:$2210.89 Year 4 total:$2249.14 Year 5 total:$2288.05 Total Paid After 5 years:$11057.70 Year 1 total interest:$36.33 Year 2 total interest:$36.96Year 3 total interest:$37.60Year 4 total interest:$38.25Year 5 total interest:$38.91 Total Interest paid after 5 years:$188.05
