Question

Find the simple interest rate due a dollars on a four months load of $875 if the monthly simple interest rate is 1.5%

Answer 1

1. Given :

• Loan = $875

,

• Four months interest = 1.5%

2. Calculate simple interest:

Interest =( 875 *1.5* 4) /100

= 5250/100

= $52.5

• This means that simple interest due will be $52.5.