A loan of $5,000 is borrowed at 6 percent simple annual interest for 18 months. How much interest is owed?
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Correct!
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Correct answer to question 195 (Arithmetic Reasoning): $450
Method
Convert 18 months to 1.5 years before applying the formula. Interest equals principal times rate times time: 5,000 x 0.06 x 1.5 gives $450.
Updated: November 2026
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