Calculate the simple interest on a loan of 18,500 at 11% interest for 18 months?

Question

$36,630.00
$3,052.50
2,543.75
763.13

Answer 1

Simple interest = PNR/100

P = 18,500
N = 1.5 years (always years and not months)
R = 11% (if instead of % the value is expressed as 0.11 then dont divide by 100)

SI = 18500 * 1.5 * 11/100 = 3052.5

Answer 2

Mental math shows that prity's answer is incorrect. Your interest would not be double the entire loan in only 1 1/2 years!

11% is just over 10%; 10% of $18,500 is $1,850. Half of that (for the remaining six months) would be $925, for a total of $2,775. Thus the only possible answer is the second one: $3,052.50.

You should do the entire math problem as one of the other posters has shown, but mental math can help you get a quick estimate--and in a multiple choice test, that is sometimes all you need.

Answer 3

simple interest means that interest is always worked out from the 18,500, not from 18,500 with other interest added.
so yearly it's 11% (i'm assuming you mean 11% interest annually)
so if interest is paid yearly then the amount is
18,500*1.11=20,535 or the interest is
18,500*0.11=2,035

if interest is paid monthly then, 0.11*1.5=0.165
so the interest is 0.165*18,500=3,052.50
total amount is 18,500*(0.11*1.5+1)=21,552.5

Answer 4

Simple Interest = (principal x rate x time)/100
(18 500x11x18)/ 12x100
3052.5
where time is in years

Answer 5

p = 18500
n = 18
r = 11%

s.i = p*n*r/100
= 18500*18*11/100
= 36630
answers is $36,630

Answer 6

Dear Person,

You will never be able to solve this problem because there is no solution at all!

Regards,
Mr. Man

Answer 7

$3,052.50