Question

Find the simple interest on a $900 loan for 1.7 years at 11.35% interest. Round your answer to the nearest cent.

Interest =

Answer 1

Answer: Interest = $173.7

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

From the information given,

P = $900

R = 11.35%

T = 1.7 years

Therefore,

I = ($900 × 11.35 × 1.7)/100 =

I = $173.7 to the nearest cent.

Answer 2

simple interest on a $900 loan for 1.7 years at 11.35% is $174

Explanation:

Simple Interest = (Principal x Rate x Time)/100

Principal = $900

Rate = 11.35%

Time = 1.7 years

Simple Interest = (900 x 11.35 x 1.7)/100 = 9x 11.35 x 1.7 = $173.655≈$174