Problem
QUESTION 3 Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent if necessary. A company borrows \( \$ 48,500 \) for 3 years at a simple interest of \( 12.5 \% \) to buy cabinets. Find the total amount paid on the loan. \( \$ 18,187.50 \) \( \$ 181,875.00 \) \( \$ 50,318.75 \) \( \$ 66,687.50 \)
Solution
Step 1 ：\( I = P \times r \times t \)
Step 2 ：\( I = 48500 \times 0.125 \times 3 \)
Step 3 ：\( I = 18187.5 \)
