How much simple interest will you pay on a 90 day loan of $625 at 15%?

2 Answers
Mar 22, 2018

$281.25

Explanation:

Take $625 loan amount and multiply by 15%=$93.75 to determine how much monthly in interest you will pay; then multiply by 3 because 90 days = 3 months.

$93.75 xx 3 = $281.25

Mar 23, 2018

=$23.44 Interest to be paid

Explanation:

Simple Interest is calculated using the formula:

SI = (PRT)/100

The time has to be in years,

We can treat 90 days as 3 months, which is 3/12 of a year.

SI = (625 xx15xx3)/(100xx12)

=$23.44 Interest to be paid