1.1: SIMPLE INTERESTS
1. A small family business takes out a simple interest loan of $ 2050 at a rate of 6.7%. What is the
total amount the small family business will repay if the loan is for 4 years?
Given:
F =?
P = $ 2050
r = 6.7% → 0.067
t = 4 years
Formula:
F = P (1 + rt)
Solution:
F = 2050 (1 + 0.067 × 4)
F = 2050 (1 + 0.268)
F = 2050 (1.268)
F = 2599.4
Final Answer:
F = $ 2,599.4
2. Samuel received a $ 1470 loan from a bank. After 6 months, he paid back amounting to $ 1550,
and closed the loan. Find the rate of interest.
Given:
F =$ 1500
P = $ 1470
r =?
t = 6 months → ½ years
Formula:
Interest = F – P
I = Prt
Solution:
Interest = 1550 – 1470
Interest = 80
80 = (1470 × r × ½)
1. A small family business takes out a simple interest loan of $ 2050 at a rate of 6.7%. What is the
total amount the small family business will repay if the loan is for 4 years?
Given:
F =?
P = $ 2050
r = 6.7% → 0.067
t = 4 years
Formula:
F = P (1 + rt)
Solution:
F = 2050 (1 + 0.067 × 4)
F = 2050 (1 + 0.268)
F = 2050 (1.268)
F = 2599.4
Final Answer:
F = $ 2,599.4
2. Samuel received a $ 1470 loan from a bank. After 6 months, he paid back amounting to $ 1550,
and closed the loan. Find the rate of interest.
Given:
F =$ 1500
P = $ 1470
r =?
t = 6 months → ½ years
Formula:
Interest = F – P
I = Prt
Solution:
Interest = 1550 – 1470
Interest = 80
80 = (1470 × r × ½)
