Question

Juanita has a loan of $25,260. This loan has a simple interest rate of 5% per year. What is the amount of interests that Juanita will be charged on this loan at the end of one year?

Answer 1

$1,263

Step-by-step explanation:

• Loan = $25,260.

,

• Simple interest rate = 5% per year.

To calculate the interest on the loan at the end of one year, we use the formula:

`Simple\: Interest=(Principal* Rate* Time)/(100)`

Substitute the given values:

`\begin{gathered} Simple\: Interest=(25,260*5*1)/(100) \\ =\$1,263 \end{gathered}`

Juanita will be charged $1,263 on this loan at the end of one year.