To find the simple interest on a loan for 1 year at 12.5%,

Question

multiply the amount of the loan by 0.125. What simple interest will you pay on a
loan of $1,458 at 12.5% for 1 year?

Answer 1

Your instructions according to your post, are :
"To find the simple interest on a loan for 1 year at 12.5%, multiply the amount of the loan by 0.125"

I would tell you exactly the same thing.