Tim Newman took out a simple interest loan of $1500 at a 10 percent interest for 12 months. After 4 payments, the balance is $1100. He pays off the loan when the next payment is due. What is the interest?

I = Po*r*t = 1100*(0.1/12)*1 = $9.17

To calculate the interest in this scenario, we need to determine the original loan amount and the interest rate.

Given information:
Principal amount (original loan amount) = $1500
Interest rate = 10% or 0.10
Number of payments made = 4
Balance when the 4th payment is made = $1100

To find the original loan amount, we subtract the total amount paid from the balance when the 4th payment is made, which gives us:
Original loan amount = Balance when 4 payments are made + Total amount paid
= $1100 + (4 x Payment amount)

We know the payment amount is calculated using the formula:
Payment amount = Principal amount x Interest rate

Substituting the known values into the formula, we have:
Payment amount = $1500 x 0.10
= $150

Now we can find the original loan amount:
Original loan amount = $1100 + (4 x $150)
= $1100 + $600
= $1700

To calculate the interest, we subtract the original loan amount from the principal amount:
Interest = Original loan amount - Principal amount
= $1700 - $1500
= $200

Therefore, the interest on this loan is $200, not $9.17.