Question

Becky borrowed $580.00 from the bank. The loan had a 13.5% simple annual interest rate, and she paid off the bill over 1.5 years. What was the total amount, including interest, Becky paid for the loan?

Answer 1

697.45

Explanation:

interest for the first year = 13.5 % of 580 = 78.3

for 0.5 year, it will be 78.3 /2 =39.15

1year + 0.5 year = 78.3 + 39.15= 117.45

add that to borrowed amount to get total amount paid

117.45+ 580= 697.45