apllication involving simple interest 2

Mathematics
Tutor: None Selected Time limit: 1 Day

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

Feb 3rd, 2015

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

                          = $330

Total amount that customer will pay to bank after 18 months = $2,000 + $330

                                                                                                  = $2,330   

Feb 3rd, 2015

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