compound interest

[dillon654321]

what is the approximate interest cost if the cost of equipment is $75,000, the interest rate 9.5%, and the life of the loan is 6 years?


I went 75,000x.095x6 I don't think that is correct. can anyone please help!!!!

 

[rbcc]

what is the approximate interest cost if the cost of equipment is $75,000, the interest rate 9.5%, and the life of the loan is 6 years?

FV=PV(1+r)^n
FV=75000(1.095)^6=129 284.36

so you will end up paying 129 284.36 in 6 years for the machine, but it cost only $75,000

so you paid 129 284.36-75 000=54 284.36 in interest. That's how I would do it