Question

Ruth borrows $440 at 0.6% simple interest per month. When Ruth pays the loan back 4 years later, how much interest does Ruth pay?

I got 566.72, did I get it correct?

Answer 1

440 * 0.006 * 4*12 = 126.72

too bad you didn't
(a) show your work
(b) do a sanity check.
0.6% * 12 = about 7% per year
.07 * 440 = $30.80 per year interest
How could you possibly get over $500 in 4 years??

Answer 2

Thanks!