Use the formula $i = P r t$ to reach a solution for the following problem. How much interest will be charged on a student loan if $8,820 is borrowed for 4 months at a 18% annual interest rate?
A) $530.40
B) $534.20
C) $529.20
D) $525.70
E) none of these

Question

Quizplus · Accepted Answer

First, we need to convert the annual interest rate to a monthly rate by dividing by 12. 
18% / 12 = 0.015

Next, we plug in the values into the formula: 
i = P r t 
i = 8820 * 0.015 * 4 
i = 529.20

Therefore, the interest charged on the loan is $529.20. So, the best choice is C.

Use the Formula i=Prti = P r ti=Prt To Reach a Solution for the Following Problem

Use the Formula $i = P r t$ To Reach a Solution for the Following Problem