Question

How do you find the total amount owed after 6 months on a loan of $900 at an annual simple interest rate of 8.5%?

Answer 1

38.25

Explanation:

Interest accrued after 6 months `= 900 xx 6/12 xx 8.5/100 = 38.25`
Total amount owed after 6 moths `= 900 + 38.25=$938.25`