What is the total amount of interest on this note?
A) $900
B) $450
C) $0
D) $2,700

Question

Quizplus · Accepted Answer

The amount of interest on a simple interest loan is calculated as follows: I = PRT, where I is the interest, P is the principal, R is the interest rate, and T is the time. Plugging in the given values, we get I = ($15,000)(0.03)(3) = $1,350. However, the question asks for the total amount of interest on the note, which is only half of this amount since the loan is being repaid in two equal installments. Therefore, the total interest is $1,350/2 = $675, which is closest to answer choice B: $450.

What Is the Total Amount of Interest on This Note