On 1 October 2017,Android Ltd made a loan to one of its customers.The customer signed a 9-month bill for $100,000 at 14%.Calculate the total interest earned on the bill.

Question

Quizplus · Accepted Answer

Using the simple interest formula, we can calculate the interest earned on the bill:

I = Prt

Where I is the interest earned, P is the principal amount (which is $100,000 in this case), r is the interest rate (14/100 = 0.14), and t is the time period (9/12 = 0.75).

Plugging in the values, we get:

I = 100,000 x 0.14 x 0.75 = $10,500

Therefore, the total interest earned on the bill is $10,500. Option C is the correct answer.

On 1 October 2017,Android Ltd Made a Loan to One