Answer to Question #267348 in Financial Math for Ayana Prica

Question

The loan of Php1,350 is to be repaid in 1 year at 4.5% simple interest. How much is added to the loan?

Answer 1

for simple interest:

$A=P(1+rt)$

$A=1350(1+0.045)=Php\ 1410.75$

it is added to the loan:

$A-P=1410.75-1350=Php\ 60.75$