math problem

Question

A loan of Rs.1500is made at a simple interset rate of 12%.The ammount that borrower owes at the end of ten months is?

Answer 1

Given that the terms of the loan are simple interest @ 12% per year or 1% per month.

Then the interest is given by:

Amount = loan[1 + (int/month)(months)]

A = $1500.00 [1 + (.01)(10)]

A = $1650.00