Question

What is the ordinary interest paid on a loan of $1,200 for 120 days at a simple interest rate of 12% annually

Answer 1

$48

Step-by-step explanation:

Simple Interest = P*R* T / 100 where P = $1,200. R = 12, T=4

Simple interest = $1200 * 12 * 4/12 / 100

Simple interest = $12 * 12 * 4/12

Simple interest = $48

So, the ordinary interest paid on a loan of $1,200 for 120 days at a simple interest rate of 12% annually is $48.