Question

Find the ordinary interest on $1,800 for two months at a rate of 12%.

     A. $216

B. $54 C. $36 D. $32

Answer 1

12 % simple interest rate per year = 1 % per month

I = P x r x t
Interest = $1,800.00 x 1 % x 2 months
Interest = $18.00 x 2
Interest = $36.00