Question

If you borrow $12,000 for 30 months at 6.5% simple interest, what is the total amount you will have to repay?

Answer 1

13,950 would be what you repay

Answer 2

From your statement, i can assume that the interest 6.5% is for yearly.

30 months = 2.5 years

1 year interest for 100 = 6.5
1 year interest for 12000 = 6.5/100 * 12000
= 780

2.5 years interest for 12000 = 780*2.5
= 1950

so the total amount that you have to pay
12000 + 1950
$ 13950