Christina Fox took out a simple interest loan at 5% for 12 months. Her previous balance is $200. What is the interest for the next payment?
200 * 0.05/12
To calculate the interest for the next payment, we need to determine the formula for simple interest:
\[\text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time}\]
Given:
Principal = $200
Rate = 5% or 0.05
Time = 12 months
We can now substitute these values into the formula and calculate the interest:
\[\text{Simple Interest} = \$200 \times 0.05 \times 12\]
\[\text{Simple Interest} = \$120\]
Therefore, the interest for the next payment is $120.
To calculate the interest for a simple interest loan, you'll need to use the formula: Interest = Principal × Rate × Time.
In this case, Christina took out a loan with a principal of $200 and an interest rate of 5% for 12 months.
Using the formula, plug in the values: Interest = $200 × 0.05 × 12.
Calculate the interest: Interest = $200 × 0.6 = $120.
Therefore, the interest for the next payment is $120.