5. a restaurant borrowed $15,000 to remodel. the loan is for 7 years and the yearly interest rate is 4.25%…

5. a restaurant borrowed $15,000 to remodel. the loan is for 7 years and the yearly interest rate is 4.25%. how much interest will the restaurant pay?

5. a restaurant borrowed $15,000 to remodel. the loan is for 7 years and the yearly interest rate is 4.25%. how much interest will the restaurant pay?

Answer

Answer:

(4462.5)

Explanation:

Step1: Identify the formula for simple interest

The formula for simple interest is (I = Prt), where (P) is the principal amount, (r) is the annual interest rate (in decimal form), and (t) is the time in years.

Step2: Convert the interest rate to decimal

Given (r=4.25%=\frac{4.25}{100} = 0.0425)

Step3: Substitute the values into the formula

We have (P = 15000), (r=0.0425), and (t = 7). (I=15000\times0.0425\times7)

Step4: Calculate the interest

First, (15000\times0.0425 = 637.5) Then, (637.5\times7=4462.5)