• TP is the total price ($) • IR is the interest rate (%) How to Calculate Interest Cost? The following example problems outline how to calculate Interest Cost. Example Problem #1: 1. First, determine the total price ($). The total price ($) is given as 500. 2. Next, determine the interest rate (%). The interest rate (%) is provided as 20. 3. Finally, calculate the Interest Cost using the equation above: IC = TP * IR/100 The values given above are inserted into the equation below: IC = 500 * 20/100 = 100.00 ($)

Example Problem #2:

The variables needed for this problem are provided below:

total price ($) = 300 interest rate (%) = 50 Entering these values and solving gives: IC = TP * IR/100 = 150 ($)