Question

2. Determine the amount of interest owed after 2 years on a $850 loan at 12.25% if no payments
are made. LTD
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Answer 1

Answer:

Question example:

Answer 2

The amount of interest is 208.74$

Here we have given

Amount (P)=850$

Interest (r)=12.25%

Time (t)=2 years

we have to calculate the simple interest

What is the formula for simple interest?

$I=\frac{PRT}{100}$

Plug the given value in above formula

$I=\frac{850*12.25*2}{100}$

Simplify above equation we get

$I=\frac{850*12.25*2}{100}\\\\I=\frac{20874}{100}\\\\I=208.74$

Therefore the amount of interest is 208.74$

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