Felicia took out a simple interest loan at 12 percent interest for 6 months.her previous balance is$2460.what is the final payment of the loan is paid off with the next payment
To calculate the final payment of the loan when it is paid off with the next payment, we need to determine the interest accrued over the 6-month period.
First, we can calculate the interest accrued using the simple interest formula:
Interest = Principal x Rate x Time
Given:
Principal (previous balance) = $2460
Rate = 12% or 0.12 (in decimal form)
Time = 6 months
Interest = $2460 x 0.12 x (6/12) = $147.60
The interest accrued on the loan over the 6-month period is $147.60.
Next, we add the interest to the previous balance to find the final payment:
Final Payment = Previous Balance + Interest
Final Payment = $2460 + $147.60 = $2607.60
Therefore, the final payment of the loan when it is paid off with the next payment is $2607.60.