Question

Calculate the simple interest paid on a loan of $544 at 3% for three months.

$48.96


$4.80


$4.90


$4.08

Answer 1

4.08

Explanation:

Interest I =Pnr

3 months =3/12 year = n

r = 3%

and, P = 544$

Therefore,

`i = 544 * (3 / 100) * (3 / 12) \\ \: \: \: = 4.08`