Answered: If a company takes out a loan of…

If a company takes out a loan of $75,000 with an annual interest rate of 5%, how much interest will it owe after one year? A) $3,000 B) $3,750 C) $5,000 D) $7,500

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Question

If a company takes out a loan of $75,000 with an
annual interest rate of 5%, how much interest will
it owe after one year?
A) $3,000
B) $3,750
C) $5,000
D) $7,500

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