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Benji borrows $1500 from a friend who charges him 10% interest. He pays the loan back in 18 months. How much interest did Benji owe his friend? Don't put a dollar sign, just enter the number.

User Kiyah
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2 Answers

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It just said his friend charged him 10% interest. It didn’t mention how much he had to pay back over the 18 months. His friend isn’t a bank. 10% of $1,500 is $150. I would think he owed him $150 in total.
He would be a horrible friend if he charged him $2,700 to borrow just $1,500.
User AnthonyR
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3 votes

Answer:

The answer is 2,700

User Juergen
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