Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent if necessary.
-A company borrows $\$ 48,000$ for 7 years at a simple interest of $7.5 \%$ to buy software. Find the total amount paid on the loan.
A) $\$ 252,000.00$
B) $\$ 73,200.00$
C) $\$ 50,520.00$
D) $\$ 25,200.00$

Question

Quizplus · Accepted Answer

The total amount paid on the loan can be calculated using the formula for simple interest: $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount (\$48,000), $r$ is the annual interest rate (7.5% or 0.075), and $t$ is the time in years (7). So, $I = \$48,000 \times 0.075 \times 7 = \$25,200$. The total amount paid is the sum of the principal and the interest: \$48,000 + \$25,200 = \$73,200.

Solve the Problem $48,000\$ 48,000$48,000 For 7 Years at a Simple Interest Of

Solve the Problem $\$ 48,000$ For 7 Years at a Simple Interest Of