Brad's bank granted him a single-payment loan of $7500 for 144 days at 7.5% ordinary interest. What is the amount of ordinary interest owed?

Question

Rene Vazquez

Mathematics

2 March, 23:16

Brad's bank granted him a single-payment loan of $7500 for 144 days at 7.5% ordinary interest. What is the amount of ordinary interest owed?

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Answers (1)

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Russell Mays · Answer 1

Okay, I am working on this in class and this is how I am being taught to do this type of problem:

First, convert the 7.5% to 0.075. Then multiply:

7,500 x 0.075 x 144 = 81,000.

So, your answer should be: $81,000 interest owed.