Question

you take out a simple interest loan for 15 months at a rate of 4.5% in the amount of $3400 how much interest do you pay

Answer 1

Answer:

The interest paid is Simple Interest

Step-by-step explanation:

Given:

Principal amount = $3400

rate of interest = 4.5%

Number of Months =  15 months

To Find:

interest  =?

Solution:

Simple Interest is earned or paid on the Principal only.

Simple Interest = $P \times r\times n$

Substituting the values,

Simple Interest = $3400\times 4.5%\times 15$

Simple Interest = $3400\times \frac{4.5}{100}\times 15$

Simple Interest = $3400\times 0.045\times 15$

Simple Interest = $3400\times 0.675$

Simple Interest = 2295