What is the entire balanced owed for a loan of $750 at a simple interest rate of 4% per year for 1.5 years?
I just don't really know if the $750 is the interest or principle...
In the formula, I = prt, 750 is the principle.
I = 750 * 0.04 * 1.5
45
To find the balance owed for a loan, you need to understand the concepts of principal, interest, and time.
In this case, the principal amount of the loan is $750. The principal is the initial amount borrowed or owed.
The interest rate is given as 4% per year. This means that every year, an additional 4% of the principal amount will be added to the balance owed.
The time period for this loan is 1.5 years. This means that the interest will accumulate for 1.5 years.
To calculate the interest, multiply the principal amount by the interest rate and the time period: Interest = Principal x Interest Rate x Time
Interest = $750 x 4% x 1.5 years
Interest = $30
Therefore, the interest for the loan is $30.
To find the total balance owed, you need to add the interest to the principal amount: Total balance owed = Principal + Interest
Total balance owed = $750 + $30
Total balance owed = $780
So, the entire balance owed for the loan of $750 at a simple interest rate of 4% per year for 1.5 years is $780.