Questions on Word Problems: Money, Business and Interest answered by real tutors!

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Question 152297: A man borrowed $3600 for 1 month at an annual rate of 5%. How much interest did he owe?: A man borrowed $3600 for 1 month at an annual rate of 5%. How much interest did he owe?
Answer by orca(336) About Me  (Show Source):
You can put this solution on YOUR website!
First we need to figure out the monthly interest rate.
The monthly interest rate is the annual interest rate divided by 12.
So the interest rate per month is
5%/12
The interest for 1 month is
3600*5%/12
= 15
So the interest is $15