Question

You visited a local bank. Because of your good credit, they agreed to give you a personal loan, simple interest, at the current interest rate of 12.5% APR you will pay this back in a year.

What is the
Interest = PRT =
Total payments = principle + interest =
Payment per month= total payment/12 =

Answer 1

L x 0.125 ie) 1000 = L 10000 100000

L x 0.125 = 125 = I = 1250 = 12500

2) ie) 125 + 1000 = 1125/12 = 93.75 per month.

Explanation:

1. Find the interest multiplier?

= You enter amount borrowed

Multiply by x 0.125

Enter the new amount

2) Find the monthly rate?

= Add up both L+ I

Divide the new amount by 12