you borrow 5,000 at APR 4% percent find the interest i after 18 months?
interest=5000(.04)^(18/12)
simple interest
I = PRT
I = 5000 * .04 * 1.5
I = 300
To find the interest, i, after 18 months on a loan borrowed at an Annual Percentage Rate (APR) of 4%, you can follow these steps:
Step 1: Convert the APR to a monthly interest rate.
APR represents the yearly interest rate, so to get the monthly interest rate, divide the APR by 12:
Monthly interest rate = APR / 12 = 4% / 12 = 0.04 / 12 = 0.003333 (approximately)
Step 2: Calculate the amount of interest over the 18-month period.
To find the interest, multiply the borrowed amount by the monthly interest rate and the number of months:
Interest = Principal (borrowed amount) x Monthly interest rate x Number of months
Interest = $5,000 x 0.003333 x 18 = $300 (approximately)
So, the interest (i) after 18 months would be approximately $300.