Question

Maurice took out an auto loan of $3200 for 6 months. The

simple annual rate was 18%. How much interest did he pay
on his loan?
$3488
OS288
S3456
S600
6
7
8
9
10

Answer 1

$288

Explanation:

First, converting R percent to r a decimal

r = R/100 = 18%/100 = 0.18 per year,

then, solving our equation

I = 3200 × 0.18 × 0.5 = 288

I = $ 288.00

The simple interest accumulated

on a principal of $ 3,200.00

at a rate of 18% per year

for 0.5 years is $ 288.00.