Rich Received a $5,000 Loan from the Bank

question 59

Essay

Rich received a $5,000 loan from the bank.The manager set up a 6% loan using the simple interest formula for one year,but with two payments.What is the interest for his second payment?

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Definitions:

December

The twelfth and final month of the year in the Gregorian calendar.

Interest

A charge for borrowed money, generally a percentage of the borrowed amount.

Months

Units of time, each roughly corresponding to one cycle of the moon’s phases, used in planning and scheduling.

Accrued Interest

Interest that has accumulated over time but has not yet been paid.