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Elan Coil [88]
3 years ago
10

A friend asks to borrow $250 for 18 months and pays 12% annual simple interest how much interest will you earn

Mathematics
1 answer:
Rzqust [24]3 years ago
7 0

Answer: $45

Step-by-step explanation:

Simple interest is calculated as Principal x Rate x Time/100

From the information given,

Principal = $250

Rate = 12% = 12/100 = 0.12

Time = 18 months; because time is given in months, we divide by 12; time is therefore stated as 18/12.

Step 2: Plug the values into the formula:

Simple interest = 250 x 0.12 x 18/12

= $45

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