Question

If John has taken a loan of $60,000 at a yearly interest rate of 8 percent, what is John’s interest expense for every month?
A.
$4,000
B.
$400
C.
$4,800
D.
$800

Answer 1

Answer:

The correct answer is C $4800 and I have solved this.

Answer 2

$400 is the Correct option

Step-by-step explanation:

GIVEN

Principal = ₹60000

Rate = 8%

Time = 1 year

___________________________

To Find

What is John’s interest expense for every month

___________________________

To find John’s interest expense for every month

We need ot find the interest of 1 year first

We know that,

Simple Interest = ( P × R × T ) / 100

Simple Interest = ( 60000 × 8 × 1 ) / 100

Simple Interest = 480000 / 100

Simple Interest = 4800

Simple Interest = ₹4800

Simple Interest of John’s expense for 1 year is ₹4800

___________________________

Now,

Let's find John’s interest expense for every month

We know that,

1 year = 12 months

John’s interest expense for 1 year is ₹4800

John’s interest expense for every month = ₹4800 / 12

= 4800 / 12

= 400

= ₹400

John’s interest expense for every month is ₹400

Means

(b) $400 is the Correct option