SOLUTION: I had asked this question yesterday but put in 12.4 should have been 12.5 When you showed the answer for 180.79 was that just for one month and should it been multiplied by 12 for

Question 39767: I had asked this question yesterday but put in 12.4 should have been 12.5
When you showed the answer for 180.79 was that just for one month and should it been multiplied by 12 for a year?
The question is what simple interest will you pay on a loan of $1,458 at 12.5% for 1 year?
Thanks!
Sher
Found 2 solutions by checkley71, atif.muhammad:
Answer by checkley71(8403) (Show Source):
You can put this solution on YOUR website!
I=PRT OR I=1458*.125*1 OR I=182.5 THIS IS THE YEARLY INTEREST.

Answer by atif.muhammad(135) (Show Source):
You can put this solution on YOUR website!
There's some kind of formula for this: Simple Interest = (Money at first x interest x time)/100 In our case, Money at first = 1458 Interest = 12.5 Time = 1 Simple Interest = (1458 x 12.5 x 1)/100 = $182.25 Your question was: When you showed the answer for 180.79 was that just for one month and should it been multiplied by 12 for a year? Ans: This will depend on your interest. If your interest was 12.5% per month, then the simple interest would be multiplied by 12, in order to get the simple interest for the year. If your interest was 12.5% per year or per annum (same thing!), then the simple interest would not need to be multiplied by 12 as it was already for the 12 months/1 year. Does that help? Get back to me if it doesn't: atif.muhammad@gmail.com