Question

Your bank granted you a single payment loan of 2,500 for 90 days at 10 percent interest. What is the interest on the loan?

Answer 1

62.5 interest on 2500 loan

Explanation:

Given that,

amount of loan bank has granted = 2500

number of years = 90 days

90 days = 3 month

3 months = 1/4 year = 0.25 year

interest rate = 10%

= 10 / 100

= 0.1

Formula to use

Principal * interest rate expressed as a decimal * time in years

2500 * 0.1 * 0.25

62.5

Hence, the interest on the loan of 2500 with 10% interest rate for 90 days is 62.5