Question

Hector took out a loan of $900 for 18 months at a rate of 5.5% annually. How much will he pay in interest on the loan?

Answer 1

Answer:

Hector will pay $74.25 interest on the loan.

Step-by-step explanation:

Hector took out a loan of $900 for 18 months at a rate of 5.5% annually.

Principal amount = $900

Rate of interest = 5.5%

Time = 18 months = 1.5 years

Formula for interest :

$I=\frac{P\times R\times T}{100}$

  $=\frac{900\times 5.5\times 1.5}{100}$

 = 74.25

Hector will pay $74.25 interest on the loan.