Question

Calculate the simple interest paid on a loan of $544 at 3% for three months.

$48.96


$4.80


$4.90


$4.08

Answer 1

Explanation:

Answer: interest at the end of 3 months is $4.08

Explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time in years

I = interest after t years

From the information given

T = 3 months = 3/12 = 0.25 years

P = $544

R = 3%

Therefore

I = (544 × 3 × 0.25)/100

I = 408/100

I = 4.08