Given:
Amount borrowed (P)= $25000
Rate of interest (r)= 6%
Time (t)= 4 years.
To find:
The total interest the company pay in all.
Solution:
We know that,
[tex]A=P(1+r)^t[/tex]
where, A is amount, P is principal, r is rate of interest and t is time period.
[tex]A=25000(1+\dfrac{6}{100})^4[/tex]
[tex]A=25000(1.06)^4[/tex]
[tex]A=25000(1.26247696)[/tex]
[tex]A=31561.924
[/tex]
Now,
[tex]I=A-P[/tex]
[tex]I=31561.924-25000[/tex]
[tex]I=6561.924[/tex]
Therefore, the total interest is $6561.924.
