Question

Find the simple interest charged for a loan of:
a $2000 for 3 months at 1.1% per month

Answer 1

$5.50

Explanation:

I = Prt

• P = $2,000
• r = 1.1% = 0.011
• t = 3 months = 0.25 years

Solving :

• I = (2,000)(0.011)(0.25)
• I = (500)(0.011)
• I = $5.50