Find the amount of interest if you are paying 4.5% interest on a $25,000 loan for 5 years.
I = PRT
I = 25,000 * 0.045 * 5
To find the amount of interest on a loan, you can use the formula:
Interest = Principal * Rate * Time
In this case, the principal is $25,000, the interest rate is 4.5% (or 0.045 in decimal form), and the time is 5 years.
So, let's plug in the values into the formula:
Interest = $25,000 * 0.045 * 5
Calculating this, we get:
Interest = $5,625
Therefore, the amount of interest you will pay on a $25,000 loan with a 4.5% interest rate for 5 years is $5,625.