Question

Sara has a loan for $1800 at a rate of 16% annually. If the interest is not compounded, how much interest will she pay in 4 years?

Answer 1

Answer:

Interest = $1152.

Step-by-step explanation:

Given information:

Loan = $1800

Rate of interest = 16%

It is given that the interest is not compounded, it means sare need to pay simple interest.

Formula for simple interest:

$I=\dfrac{P\times r\times t}{100}$

where, P is principal, r is rate of interest in % and t is time in years.

Substitute P=1800, r=16 and t=4 in the above formula.

$I=\dfrac{1800\times 16\times 4}{100}$

$I=18\times 64$

$I=1152$

Therefore, she will pay $1152 as interest.

Answer 2

The answer is $1,152 you get that answer by taking 1,800x .16x 4 = 1,152 so at simple interest you have $1,152 in interest