posted by Renee .
Rancher Rick purchased an additional 80 acres of hay ground to produce hay for his Angus herd. He paid $700/acre. He paid $20,000 down and took out a 10 year loan with interest calculated using add-on interest for the rest of the cost of the land. Assume annual payments and 5% interest rate. What is the amount of total interest paid over the lif of the loan?