Question

Hector took out a loan of $900 for 18 months at a rate of 5.5% annually. How much will he pay in interest on the loan?

Answer 1

Hector will pay $74.25 interest on the loan.

Explanation:

Hector took out a loan of $900 for 18 months at a rate of 5.5% annually.

Principal amount = $900

Rate of interest = 5.5%

Time = 18 months = 1.5 years

Formula for interest :

`I=(P* R* T)/(100)`

`=(900* 5.5* 1.5)/(100)`

= 74.25

Hector will pay $74.25 interest on the loan.