Question

How much interest will be paid in 1 year for a loan of $4500 at 7 1/2% simple interest?

Answer 1

The answer is $337.50 paid. We would change 7 1/2% (7.5%) to its decimal form which is .075. Then we would multiply that by $4,500 which would get $337.5 or $337.50 which is the same thing. Hope this helped!