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?

Question

Is it $9.17?

Thanks!

Answer 1

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