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45 votes
45 votes
Mary borrows $1250 from the bank. The loan terms is 18 months with 5% annual interest. How much interest will she pay? How much will she pay back in all?

User Vbgd
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1 Answer

18 votes
18 votes

Answer: 3375

Step-by-step explanation: The formula for simple interest is P( Principal, or initial amount) x R ( Rate or the percentage) x T ( Time) all out of 100( because of the percentage)

P x R x T/100

1. 1250 x 18 x 15/ 100

If you can simplify, or divide or cancel out, please do, it’ll make it easier; the 0 at the end of 1250, takes out one 0 from 100. 5 could cancel out 15 and 10, leaving them at 3 and 5 respectively, and lastly the two ( the hundred broken down) dividing 18, leaving us with 9.
2. 125 x 27

With all the breaking down we just did, we just have to multiply the two, leaving us with your answer: 3375.

Hope this was helpful

User Pragya
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3.3k points
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