Question

Find the simple interest paid and the amount paid for the loan.

$4800 at 9.9% for 4 years

Answer 1

$1900.80

Explanation:

First, converting R percent to r a decimal

r = R/100 = 9.9%/100 = 0.099 per year,

then, solving our equation

I = 4800 × 0.099 × 4 = 1900.8

I = $ 1,900.80

The simple interest accumulated

on a principal of $ 4,800.00

at a rate of 9.9% per year

for 4 years is $ 1,900.80.