SOLUTION: The total amount of interest that will be paid on a 5-year, $90,000 note payable at 11% simple annual interest is?

Question 881214: The total amount of interest that will be paid on a 5-year, $90,000 note payable at 11% simple annual interest is?

Found 2 solutions by JulietG, MathTherapy:
Answer by JulietG(1812) (Show Source): You can put this solution on YOUR website!
If the interest is compounded annually, then
Year 1: 90000 * 1.11 = 99900
Year 2: 99900 * 1.11 = 110889
Year 3: 110889 * 1.11 = 123086.79
Year 4: 123086.79 * 1.11 = 136626.33
Year 5: 136626.33 * 1.11 = 151655.23
.
The principal is 90,000. The interest is 61655.23
.
We multiply by 1.11 because 1.00 is the principal and .11 is the simple interest rate.
Answer by MathTherapy(10551) (Show Source): You can put this solution on YOUR website!

The total amount of interest that will be paid on a 5-year, $90,000 note payable at 11% simple annual interest is?

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