Ruth borrows $440 at 0.6% simple interest per month. When Ruth pays the loan back 4 years later, how much interest does Ruth pay?
I got 566.72, did I get it correct?
440 * 0.006 * 4*12 = 126.72
too bad you didn't
(a) show your work
(b) do a sanity check.
0.6% * 12 = about 7% per year
.07 * 440 = $30.80 per year interest
How could you possibly get over $500 in 4 years??
Thanks!
To calculate the interest Ruth pays on a loan, we can use the simple interest formula:
Interest = Principal * Rate * Time
Given that Ruth borrows $440 and the interest rate is 0.6% per month, we can substitute these values into the formula:
Principal = $440
Rate = 0.6% (which is equivalent to 0.006 as a decimal)
Time = 4 years
Let's calculate the interest:
Interest = $440 * 0.006 * (12 * 4)
First, we convert 4 years to months by multiplying it by 12. This gives us:
Interest = $440 * 0.006 * 48
Now, we can calculate the interest:
Interest = $440 * 0.006 * 48
= $126.72
Based on the calculations, the interest that Ruth pays on the loan is $126.72, not $566.72. It appears that there was an error in your calculation.