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lys-0071
1 month ago
6

The shoe store manager borrowed $17,000.00 from the bank to purchase 1000 pairs of shoes. The bank charges a simple interest rat

e of 5% per year on a loan to a business. If it takes 3 years to pay back the loan and interest, what is the total amount of interest that the shoe store will pay?
Mathematics
1 answer:
babunello [11.8K]1 month ago
7 0

Answer:

2550

Step-by-step explanation:

1) The initial amount borrowed is 17,000.

2) The interest rate is set at 5%.

3) Therefore, to calculate interest: 0.05 * 17000 equals 850.

4) Since the repayment takes 3 years, multiply by 3: 850 * 3 equals 2550.

5) Thus, the total interest that the shoe store is obligated to pay is 2550.

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