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Simple interest is calculated: Interest= Principle X Rate X Time. In this case Interest= 20000 X .089 X 6 (72 months= 6 yrs) which equals $10680 in interest. You would owe/pay $30680 at the end of the 72 months.

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Q: What does borrowing 20 thousand dollars at simple interest rate of 8.9 per cent for 72 months mean?
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