Question

Josh borrowed $50,000 from the bank to buy a new truck. The bank is going to charge him an interest rate of 6.9%. If his loan lasts 39 months, choose the correct equation to determine Josh's simple interest.

Answer 1

The simple interest is $11,212.5 and the equation to determine Josh's simple interest is I = PRT/100

Explanation:

The formula for calculating simple interest is expressed as;

SI = Principal * rate * time/100

SI = 50,000 * 6.9*39/100*12

SI = 500*6.9*39/12

SI = 134,550/12

SI = 11,212.5

Hence the simple interest is $11,212.5 and the equation to determine Josh's simple interest is I = PRT/100

P is the amount borrowed

R is the interest rate

T is the time in years