The simple interest on a $14,500 loan at 9% interest for 5 years
my answer is $301.00 per month
Your original question doesn't ask for the interest per month. It just wants to know the total interest you'd pay at the end of five years. If you paid $301 per month for 60 months, you'd pay almost three times the amount of interest than you should.
Try again, using this formula.
I = P*r*t
To calculate the simple interest on a loan, you can use the formula:
Interest = Principal * Rate * Time
In this case, the principal (loan amount) is $14,500, the interest rate is 9%, and the time period is 5 years.
To find the total interest, plug these values into the formula:
Interest = $14,500 * 0.09 * 5
Interest = $6,525
To calculate the monthly interest, divide the total interest by the number of months in the loan term. Since there are 12 months in a year, the loan term of 5 years equals 60 months.
Monthly interest = $6,525 / 60
Monthly interest = $108.75
Therefore, the simple interest on a $14,500 loan at a 9% interest rate for 5 years is approximately $108.75 per month, not $301.00 per month as you mentioned.