Question

Rita has a loan of 45,580.This has a simple interest of 4% per year.What is the amount of interest that Rita will be chagrined on this loan at the end of the year?please show me how to work it out.

Answer 1

At the end of the first year, unless she is interest free for the first year, will be 47,403.20 because when you multiply the original number by 4% (or .04), you get 1,823.20. Add this to the original amount, and that is what she has to pay back after the first year.

Answer 2

18.232 per year 45.580 x 0.4