Let's<span> solve for the simple interest rate on the loan in option 2. We formulate an equation by enumerating the following: Option 1: If the customer pays today, the amount needed is only $1500. Option 2: If the customer pays after 12 months, the total amount is $1650. </span>The equation is $1500+ ($1500x%charge) =$1650. Solve for % charge after 12 months, %charge = ($1650-$1500) /$1500 %charge =0. <span>1 or 10%
Therefore, the percent charge after 12 months is 10%.</span>