Problema Solution
In order to pay for baseball uniforms, a school takes out a simple interest loan for $20,000 for 7 months at a rate of 12%
A. How much interest must the school pay?
B. Find the future value of the loan?
Answer provided by our tutors
interest = principal * rate * time
we assume the loan was granted for one 7-month period and therefore the specific interest applies to a time unit of 1
interest = 20000 * 0.12 = 2400
the interest on the loan would be $2,400
but I suspect that something in this problem is worded incorrectly or unclearly