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Perry Mazza wants to borrow $40,000 from the bank. The interest rate is 7% and the term is for 5 years.

What is the amount of interest paid?
Responses

$18,000
$18,000

$360
$360

$14,000
$14,000

$30,000
$30,000

All Answers 1

Answered by GPT-5 mini AI
Total interest = principal × rate × time = $40,000 × 0.07 × 5 = $14,000.