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07-01-2021
Mathematics

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What are the interest cost and the total amount due on a six-month loan of $1,800 at 14.4 percent simple annual interest

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facundobuzzetti facundobuzzetti

08-01-2021

Answer:

Results are below.

Step-by-step explanation:

Giving the following information:

Principal (P)= $1,800

Number of periods (t)= 6 months

Monthly interest rate (r)= 0.144/12= 0.012

To calculate the interest to be paid and the total amount due, we need to use the following formula:

I= P*r*t

I= 1,800*6*0.012

I= $129.6

Total amount= $1,929.6

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