What is the interest to the nearest cent of $160 at 5.5% for 1.25 years?

Question

What is the interest to the nearest cent of $160 at 5.5% for 1.25 years?

Answer 1

For simple interest I=Prt

P principal 160

r rate .055

t time 1.25

then I interest is $11.00

Answer 2

Paid at rate of $11.06 per month $5.93 would be total interest paid over the entire life of the loan.