Solitude Company borrowed $60,000 for 3 years with a stated annual rate of 5%. Assuming interest is computed as simple interest, Solitude computed their interest expense to be $3,000 per year in interest, for a total of $9,000 at the end of the loan term. (Click the icon to view Solitude's simple interest computation.) Now assume Solitude Company borrowed $60,000 for 3 years at a 5% interest rate with interest compounded annually. Solitude will repay the entire amount (principal plus interest) at the end of the 3-year period. Thus, it is not paying any interest until the end of the 3 years. How much interest will it pay? Compare this amount of interest to the amount computed using the simple interest computation. How much interest will it pay? (Round your answer to the nearest whole dollar.) Assuming annual compounding, Solitude will pay interest of Compare this amount of interest to the amount computed using the simple interest computation. The total interest computed using the compound interest computation is computed using the simple interest computation. Simple Interest Computation than the total interest Principal * Interest rate % x Time (years) = Simple interest $ 60,000 x 5% x 3 = $ 9,000