Question

13. Calculate the simple interest on a loan of $8000 at a flat rate of 7% p.a. over 18 months ​

Answer 1

Answer: $840 was the interest

Explanation:

Simple interest formula:

`Final = Initial Balance * (1+(interest * time))`

Where time is in years

`8000 * (1+((7)/(100) *(18)/(12))) = 8840`

$8840 - 8000 = 840 interest was gained