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

$I = P \times r \times t$

t= $\frac{15}{12}= 1.25$

$I = 5000\times 0.15 \times 1.25$

= $937.5$

Total Amount to be paid= Interest+ Principle amount

=$937.5+ 5000= P5937.50$