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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?

Updated: 11/3/2022

Wiki User

11y ago

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

Wiki User

11y ago

Anonymous

Lvl 1
4y ago

15000

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