1) A new bank offered simple interest loans at 11% for new customers. If a customers took out a loan for $2000 to be paid back in 18 month ( 18/12 = 3/2 years) find.
a) the interest on the loan
b) the total amount that the customer owes (principal + in
Principal amount = $2,000
Interest rate = 11% per year
Time period = 18 months or 3/2 years
Interest on loan = $2,000 * 11/100 * 3/2
Total amount that customer will pay to bank after 18 months = $2,000 + $330
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