Question

Pablo Picasso obtained a loan of $2,400 to install a new roof on his home. The interest rate is 12% and the monthly payment is $113.04. What is the interest on the first monthly payment?

A) $24.00
B) $25.04
C) $29.90
D) $32.01

Answer 1

If you do 2,400 x .12 you get 288
You then need to do 288 and divide it by 12 and you get 24.
Your answer should be A. $24.00