Patricia nichols took out a $4,000 simple interest loan at 12% for 12 months. After 5 payments, the balance was $2,526.85. She pays off the loan when the next payment is due. a. What is the current month's interest? b. What is the final payment

a) $25.27 b) $ 2552.12

Step-by-step explanation:

current month's interest = balance * rate * 1/12 since one year equals 12 months

current month's interest = 2526.85 * 0.12 * 1/12 = $ 25.27

b) the final payment = previous balance + 25.27 = 2526.85 + 25.27 = $ 2552.12