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 18 months. What was
the total amount, including interest, Becky paid for the loan?

Answer 1

Answer: $697.45

Work Shown:

P = 580

r = 0.135

t = 18 months = 18/12 = 1.5 years

A = P*(1+r*t)

A = 580*(1+0.135*1.5)

A = 697.45