Suppose you borrowed $27,000 at a rate of 10.5% and must repay it in 5 equal installments at the end of each of the next 5 years. The interest would you have to pay in the first year will be $2835.00.
How to calculate the amount of interest?
We are given:
Principle amount, P = $27,000
rate of interest, r = 10.5%
Interest amount will be:
[tex]\frac{P}{r} \times 100\\\frac{27000}{10.5} \times 100\\ \\2835\\[/tex]
Hence, $2835 must be paid as the interest in the first year.
To learn more about interest, refer to:
brainly.com/question/14445709
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