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A $3,000 loan is taken out for 12% interest for 6 months. What is the amount of interest charged?

A. $36.00
B. $90.00
C. $180.00
D. $270.00

User Jkalivas
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2 Answers

2 votes
A is you answer I took the test
User Technofunc
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10 votes

Answer:

$180

Explanation:

Simple interest → ( principal * rate of interest * time in years ) ÷ 100

Here the principal is $3,000, rate of interest is 12%, years in years will be

(6/12) = 0.5 years

Using the formula:

Interest charge → ( 3,000 * 12 * 0.5 ) ÷ 100

→ ( 18000 ) ÷ 100

→ $180

User Who
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