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Back to 6.3 Simple Interest

6.3 Exercise 5

Avg difficulty 2.5

Abeje needs a loan to purchase equipment for the gym she is going to open. She visits the bank and secures a 4-month loan of $20,000. Her annual percentage rate is 6.75%. How much interest will Abeje pay and what is her loan payoff amount?

OpenStax Contemporary Mathematics, 6.3 Simple Interest, exercise 5

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.