Question

you take out a simple interest loan for 15 months at a rate of 4.5% in the amount of $3400 how much interest do you pay

Answer 1

The interest paid is Simple Interest

Explanation:

Given:

Principal amount = $3400

rate of interest = 4.5%

Number of Months = 15 months

To Find:

interest =?

Solution:

Simple Interest is earned or paid on the Principal only.

Simple Interest =
`P * r* n`

Substituting the values,

Simple Interest =
`3400* 4.5%* 15`

Simple Interest =
`3400* (4.5)/(100)* 15`

Simple Interest =
`3400* 0.045* 15`

Simple Interest =
`3400* 0.675`

Simple Interest = 2295