A company borrows $120,000 at anannual interest rate of 5% for aperiod of 3 years. Calculate thetotal interest to be paid over the 3years using simple interest.

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Answered: A company borrows $120,000 at an annual…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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A company borrows $120,000 at an annual interest rate of 5% for a period of 3 years. Calculate the total interest to be paid over the 3 years using simple interest.