What lump sum amount of interest will be paid on a 15000 loa

What lump sum amount of interest will be paid on a $15,000 loan that was made on August 1, 2008, and repaid on November 1, 2012, with ordinary simple interest at 15% per year? $4,250 O $9,562.50 $9,000 O $24,563

Solution

Option (2).

Number of years = 4 years and 3 months = 4.25 years

Total interest paid in 4 years and 3 months = $15,000 x 15% x 4.25 = $9,562.50