Finite Mathematics : Simple Interest

Study concepts, example questions & explanations for Finite Mathematics

varsity tutors app store varsity tutors android store

Example Questions

Example Question #2 : Finite Mathematics

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.

Learning Tools by Varsity Tutors