Question

What is the interest on a $1,000, 18-month loan, with a 10% simple interest rate?

Answer 1

The formula for simple interest is I = Prt, where I is the interest, P is the principal or amount borrowed, r is the interest rate, and t is the time in years.

In this case, P = $1,000, r = 10% or 0.10 as a decimal, and t = 1.5 years (since 18 months is equivalent to 1.5 years).

I = Prt

I = $1,000 * 0.10 * 1.5

I = $150

Therefore, the interest on the $1,000 loan with a 10% simple interest rate for 18 months is $150.

Answer 2

$150

Explanation:

Interest = Principal x Rate x Time

where Principal is the amount borrowed, Rate is the interest rate, and Time is the duration of the loan.

In this case, the Principal is $1,000, the Rate is 10%, and the Time is 18 months (which we'll convert to a fraction of a year).

First, we need to convert 18 months to a fraction of a year. Since there are 12 months in a year, 18 months is equal to 18/12 = 1.5 years.

Using the formula:

Interest = Principal x Rate x Time

Interest = $1,000 x 0.10 x 1.5

Interest = $150

So the interest on the $1,000 loan with a 10% simple interest rate for 18 months is $150.