Question

Christina fox took out a simple interest loan at 5%interest for 12 months. Her previous balance is $200. What is her final payment if the loan is paid off with the next payment?

Answer 1

Answer: The final payment if the loan is paid off with the next payment will be $210.

Explanation:

Since er have given that

Principal amount = $200

Rate of interest = 5%

Time taken by Christina = 12 months = 1 year

So, Simple interest for the year

`S.I.=(P* R* T)/(100)\\\\=Interest=(200* 5* 1)/(100)\\\\=\$10`

`Amount=200+10=\$210`

So, the final payment if the loan is paid off with the next payment will be $210.