Question

(The table shows the interest rates for auto repair loans based on how long it takes to pay off the loan). Time Rate (%) 6 months 3.5 12 months 4.0 18 months 4.25 Jin borrows $3.670 and plans to pay the loan off in 18 months. How much simple interest will he owe if it takes 18 months to repay the loan? Round to the nearest cent

Answer 1

EXPLANATION

Let's see the facts:

Time [Autorepair] Rate

6 3.5

12 4.0

18 4.25

Jin Borrows= $3,670 plans to pay off in 18 months.

Jin Owe= unknown

So, multiplying 3,670 by the 18 months rate, in decimal form, give us the owe as shown as follows:

3,670 x (rate in decimal form--> rate/100)= Simple interest

So, the answer is:

3,670 x (4.25/100) = 3,670 x 0.0425 = 155.97

The simple interest is $156.00