Question

A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period?

Answer 1

$Soln,$

Loan amount$=P5,000$

Period$= 15$ months $=1.25 years$

Interest rate$=15 \%$ $=0.15$

$A=P(1+rt)$$=P(1+rate\times\ time)$

$A=P5000(1+0.15(15/12)months)$

$A=P5000(1+0.1875)$

$=P5000(1.1875)$

Amount due $=5937.50$