Connie loaned Sam $$\1,500$$ at a yearly interest rate of 8%. After one year what is the interest owed on this loan?

$$\120$$

Explanation

The yearly interest charged on this loan is the annual interest rate (8%) multiplied by the amount borrowed $$(\1,500)$$. To get the interest charged first convert the interest rate from a percentage to a decimal by dividing by 100 (8 /100) to get 0.08 then multiply 0.08 by $$\1,500$$ to get $$\120$$.
NOTE
When you're dealing with percentages you'll always need to convert the percent to a decimal by dividing by 100 before doing any calculations with it.