A customer requests a loan advance of $300 with an annual interest rate of 22%. What is the dollar amount of the interest for the entire year
0.22 * 300 = ?
The annual interest rate for a customer’s loan of $425 is 15.75%. What is the total dollar amount to be repaid on the loan, including principle and interest, for the entire year?
To calculate the dollar amount of interest for the entire year, you need to multiply the loan amount by the annual interest rate.
Step 1: Convert the annual interest rate to a decimal.
Annual interest rate = 22%
Convert 22% to decimal form by dividing it by 100:
Annual interest rate = 22/100 = 0.22
Step 2: Multiply the loan amount by the annual interest rate.
Loan amount = $300
Annual interest rate = 0.22
Interest amount = Loan amount x Annual interest rate
Interest amount = $300 x 0.22 = $66
Therefore, the dollar amount of interest for the entire year is $66.