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Example Questions
Example Question #1 : Mathematics Of Finance
What is the total interest made after 4 years on a simple interest loan that accumulates 13% each year and has original amount was $1350.
Possible Answers:
Correct answer:
Explanation:
To solve this problem, first recall the formula to calculate simple interest.
where
From the question it's known that,
Thus the equation becomes,
Therefore $702 in interested accumulated after four years.
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