Question 68410
What is ask in the problem?
--> What is the interest on faye's loan after one month
<br><br>
Given: 
--> Faye has a loan of $70,000.
--> Bank charges her 6% per annum simple interest
<br><br>
Solution:
Formula for Simple interest ::>> {{{highlight (I = P(R)(t)) }}}
Where P = Principal / Loan
      R = Rate of the bank (Charge)
      t = time, Note 1 year = 12 months
<br>
I = PRt
  = 70,000 (0.06) 1 , we use 1 because the rate is per annum (per year)
  = 4, 200 ---> this is the interest after one year.
<br>
The problem is what is the interest after one month? Since 1 year = 12 months, we will simply divide the interest in a year by 12
<br>
{{{ I=(4200)/12}}}
<br>
I = $ 350 this is the interest of faye's loan after a month.