Answer:
$1,263
Explanation:
• Loan = $25,260.
,• Simple interest rate = 5% per year.
To calculate the interest on the loan at the end of one year, we use the formula:
[tex]Simple\: Interest=\frac{Principal\times Rate\times Time}{100}[/tex]Substitute the given values:
[tex]\begin{gathered} Simple\: Interest=\frac{25,260\times5\times1}{100} \\ =\$1,263 \end{gathered}[/tex]Juanita will be charged $1,263 on this loan at the end of one year.
