Answer
(a) The total amount that should b repaid is 128,402 dollars.
(b) The amount of interest earned is 52,402 dollars.
Work Step by Step
Using the 6% column of the compound interest table, the compound amount for 9 years is found to be 1.6895. Multiply this amount times the principle to calculate the amount that will be repaid.
$1.6895\times76,000=128,402$ dollars
The interest is the difference between the amount to be repaid and the principle.
$128,402-76,000=52,402$ dollars
