SOLUTION: A bank charges 2.25% per month simple interest on personal loans. if john borrows $6400 for a period of 2 years 1 month, find the total interest he has to pay?

Question 965858: A bank charges 2.25% per month simple interest on personal loans. if john borrows $6400 for a period of 2 years 1 month, find the total interest he has to pay?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
A bank charges 2.25% per month simple interest on personal loans.
if john borrows $6400 for a period of 2 years 1 month, find the total interest he has to pay?
Change 2 yrs 1 month to 25 months
I = P*R*t where;
I = total interest
P = amt borrowed
r = interest rate in decimal form per month
t = time in months
:
I = 6400 * .0225 * 25
I = $3600!! Good grief that is a lot of interest, let that be a lesson to us all.
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