The simple interest due on a 6-month loan of $2,500 is $125. What is the monthly payment on the loan?

$2,625

$437.50

$20.83

$416.67

Question

Mathematics

Dale Patel

24 April, 18:11

The simple interest due on a 6-month loan of $2,500 is $125. What is the monthly payment on the loan?

$2,625

$437.50

$20.83

$416.67

+1

Answers (1)

Know the Answer?

Dax Webb · Answer 1

A person borrows $2500 and they must pay this amount back, plus the $125 in simple interest. In total, they must pay back 2500+125 = 2625 dollars.

Divide this amount over 6 months

2625/6 = 437.50

The monthly payment is $437.50, so the answer is choice B

The simple interest due on a 6-month loan of $2,500 is $125. What is the monthly payment on the loan?$2,625$437.50$20.83$416.67

The simple interest due on a 6-month loan of $2,500 is $125. What is the monthly payment on the loan?

$2,625

$437.50

$20.83

$416.67