Question

Find the simple interest if the loan amount is $390 at a rate of 3% for 18 months.

Answer 1

$17.55

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year,

then, solving our equation

I = 390 × 0.03 × 1.5 = 17.55

I = $ 17.55

The simple interest accumulated

on a principal of $ 390.00

at a rate of 3% per year

for 1.5 years is $ 17.55.