Question

Rita has a loan of $45,580. This loan has a simple interest rate 4% per year . What is the amount of interest that rRta will be charged on this loan at the end of the year?

Answer 1

$1,823.2

Explanation:

Simple interest is calculated using the formula

I = P X R X T

where I is the interest amount

P is the principal amount: 45,580.

R is the interest rate which is 4 %, or 0.04%

T is time, One year.

I = $45,580 x 0.04 x 1

I = $1,823.2 x 1

I = $1,823.2