Question

Mallory took out a loan for $1500. She paid the loan back in 1 year with 7% simple interest. How much did Mallory pay in total?

Answer 1

$1605

Explanation:

Because this is simple interest, you can convert the 7% into a decimal

Because she payed an EXTRA 7% she payed 107% total

107% is the equivalent to 1.07

By multiplying 1500 x 1.07 = 1605