Question

Francesca obtains a loan of $18.965.00. The loan has a simple interest rate of 3%. How much interest will Francesca owe at the end of the first year?

Answer 1

$568.95

Explanation:

Given parameters:

Value of loan = $18965

Interest rate = 3%

Time = 1year

Unknown:

Interest = ?

Solution:

The interest on a particular amount is given as:

I =
`(PRT)/(100)`

I is the interest

P is the principal

R is the rate

T is the time

I =
`(18965 x 3 x 1)/(100)` = $568.95