At Lefty's Loans they use the simple interest formula for all their loans.
Mr. Toejamme borrows $2000 for 3 years at a rate of 15%.
I=2000(.15)(3)=$900
He must pay Lefty back $2900 in three years.
($2000 principle + $900 interest = $2900 total)
His monthly payments would be $80.56.
$2900 รท 36 months
What would the monthly payments be on a loan of $10,000 for 4 years at a rate of 12%?
What would the interest be on a loan of $5000 for 3 months at 25%?