Simple Interest - Finite Mathematics
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Question
What is the total interest made after 4 years on a simple interest loan that accumulates 13% each year and has original amount was $1350.
What is the total interest made after 4 years on a simple interest loan that accumulates 13% each year and has original amount was $1350.
Answer
To solve this problem, first recall the formula to calculate simple interest.
where
From the question it's known that,
Thus the equation becomes,
Therefore $702 in interested accumulated after four years.
To solve this problem, first recall the formula to calculate simple interest.
where
From the question it's known that,
Thus the equation becomes,
Therefore $702 in interested accumulated after four years.
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