you borrow $1200 from a bank that bank charges 9.5% simple annual interest. after 15 months you pay back the loan. how much interest do you pay on the loan? what is the total amount that you pay the bank.
interest is 1200*0.095*(15/12) = 142.50
steve where did you get the (15/12) from?
To calculate the amount of interest you pay on the loan, you can use the formula:
Interest = Principal x Rate x Time
Here's how you apply the formula in this case:
Principal = $1200
Rate = 9.5% = 0.095 (convert percentage to decimal form)
Time = 15 months = 15/12 years (convert months to years)
Now, let's calculate the interest:
Interest = $1200 x 0.095 x (15/12)
= $1200 x 0.095 x 1.25
= $142.50
Therefore, you will pay $142.50 in interest on the loan.
To find the total amount that you pay the bank, you simply need to add the principal to the interest:
Total amount = Principal + Interest
= $1200 + $142.50
= $1342.50
Therefore, the total amount you will pay the bank is $1342.50.