A credit card company charges 7% simple interest. What is the total interest on a $1,900 loan at the end of two years?
A credit card company expects a minimum payment each month, with interest required on the remaining balance.
It's a math word problem I need to know what to do. I don't care about that.
I = PRT
I = 1,900 * 0.07 * 2
Thank you
$266, is this correct?
Yes, that's correct.
To calculate the total interest on a loan, you need to multiply the principal amount (in this case, $1,900) by the interest rate (in this case, 7%) and by the time period (in this case, 2 years).
First, convert the percentage interest rate to a decimal by dividing it by 100: 7/100 = 0.07.
Next, multiply the principal amount by the interest rate and the time period: $1,900 x 0.07 x 2 = $266.
Therefore, the total interest on the $1,900 loan at the end of two years would be $266.