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