Question

Sara has a loan for $1800 at a rate of 16% annually. If the interest is not compounded, how much interest will she pay in 4 years?

Answer 1

the answer is $1,152 you get that answer by taking 1,800x .16x 4 = 1,152 so at simple interest you have $1,152 in interest

Answer 2

Interest = $1152.

Explanation:

Given information:

Loan = $1800

Rate of interest = 16%

It is given that the interest is not compounded, it means sare need to pay simple interest.

Formula for simple interest:

`I=(P* r* t)/(100)`

where, P is principal, r is rate of interest in % and t is time in years.

Substitute P=1800, r=16 and t=4 in the above formula.

`I=(1800* 16* 4)/(100)`

`I=18* 64`

`I=1152`

Therefore, she will pay $1152 as interest.