<PRE><B>Question 1183466</B>
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If the problem talks about the loan interest and gives a percentage without further explanations, this percentage 


is the annual percentage, &amp;nbsp;by default.


It means that the unit of the time is a year in the problem.


In your problem, &amp;nbsp;the time is  &amp;nbsp;&amp;nbsp;t = {{{11/12}}}  &amp;nbsp;of a year.


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To see many similar &amp;nbsp;(and different) &amp;nbsp;simple interest problems solved and explained, &amp;nbsp;look into the lesson

&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;- &lt;A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Simple-interest-percentage-problems.lesson&gt;Simple interest percentage problems&lt;/A&gt; 

in this site.



Learn the subject from there.



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