Question

Jessica borrowed $1,450 for three months at an annual rate of 8.75%under a single-payment plan. How much interest must she pay?a. $0.30b. $31.72c. $4,893.75d. $108.75

Answer 1

Given:

Principal amount (P)= $1450

Rate (R) = 8.75%

Time (T)= 3 months

The interest is given by the formula,

`\begin{gathered} I=(P* R* T)/(100*12) \\ =(1450*8.75*3)/(100*12) \\ =31.71875 \end{gathered}`