Finite Mathematics : Simple Interest

Study concepts, example questions & explanations for Finite Mathematics

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Example Questions

Example Question #1 : Simple Interest

What is the total interest made after 4 years on a simple interest loan that accumulates 13% each year and has original amount was $1350.

Possible Answers:

Correct answer:


To solve this problem, first recall the formula to calculate simple interest.


From the question it's known that,

Thus the equation becomes,

Therefore $702 in interested accumulated after four years.

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