How much interest is paid in the first month of a loan of 5000 borrowed for 5 years at 12 percent per year interest?

To calculate the interest paid in the first month of a loan of $5,000 at an annual interest rate of 12%, you first determine the monthly interest rate by dividing the annual rate by 12, which gives 1% per month (12% / 12). Then, multiply the loan amount by the monthly interest rate: $5,000 x 0.01 = $50. Therefore, the interest paid in the first month is $50.