Question

Christina Fox took out a simple interest loan at 5 percent for 12 months. Her previous balance is $200. What is the interest for the next payment?

a. $0.83
b. $0.99
c. $0.59
d. $1.37

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Answer 1

• the answer is "A. $0.83........

Answer 2

a. $0.83

Explanation:

Calculation for the interest for the next payment

Using this formula

Next payment Interest=Previous balance*Simple interest loan percentage/Numbers of months

Let plug in the formula

Next payment Interest=$200*0.05/12

Next payment Interest=0.83

Therefore the interest for the next payment will be 0.83