Question

2) Ruth borrows $440 at 0.6% simple interest per month. When

Ruth pays the loan back 4 years later, how much interest does
Ruth pay?

Answer 1

$10.56

Explanation:

First, converting R percent to r a decimal

r = R/100 = 0.6%/100 = 0.006 per year,

then, solving our equation

I = 440 × 0.006 × 4 = 10.56

I = $ 10.56

The simple interest accumulated

on a principal of $ 440.00

at a rate of 0.6% per year

for 4 years is $ 10.56.