Finite Mathematics : Simple Interest

Example Questions

Example Question #4 : Finite Mathematics

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: Explanation: To solve this problem, first recall the formula to calculate simple interest. where From the question it's known that, Thus the equation becomes, Therefore$702 in interested accumulated after four years.