Zeki's course at a trade school cost $1,500. The school gave him a loan for the full amount at an interest rate of 23%. The school expects a payment of $123.00 every month for 15 months. How much interest will Zeki have paid when the loan balance is $0?

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Mathematics

Hope

12 July, 19:16

Zeki's course at a trade school cost $1,500. The school gave him a loan for the full amount at an interest rate of 23%. The school expects a payment of $123.00 every month for 15 months. How much interest will Zeki have paid when the loan balance is $0?

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Kaylin Sandoval · Answer 1

Typically, interest is charged by month and since this problem doesn't say anything about compound interest, we'll treat it as simple. We can just simply multiply 1500 and 0.23 to get the total amount of interest. The total amount of interest is 345. Assuming that the $123 to be paid monthly doesn't include the interest yet, Zeki has to pay 345 in total. At the end of the 15 months, he would have paid 345.