What is the interest cost and the total amount due on a six-month loan of $1,500 at 13.2% simple annual interest?
A) $99; $1,500
B) $99; $1,599
C) $198; $1,698
D) $198; $1,500

Question

Quizplus · Accepted Answer

The interest cost for a six-month period at 13.2% annual interest on $1,500 is calculated as follows: Interest = Principal × Rate × Time = $1,500 × 13.2% × 0.5 (since it's for 6 months, or half a year) = $99. Therefore, the total amount due, which is the sum of the principal and the interest, is $1,500 + $99 = $1,599.

What Is the Interest Cost and the Total Amount Due