joe borrows $4,000, the loan is for 18 months at 5% interest, whats the total amount due on the loan?
The simple interest rule is:
Amount due
=Principal * (1+rate*period)
=4000 * (1+0.05*1.5)
=4300
Amount due
=Principal * (1+rate*period)
=4000 * (1+0.05*1.5)
=4300