Question

Ms. delilio borrowed 1,200 from a bank for 3 months at 12% annual interest. How much interest did she pay?

Answer 1

Answer: $36

Explanation:

3/12x1200x0.12=36

SIMPLE INTEREST FORMULA

TIME(ALWAYS IN YEARS)FOR EXAMPLE 4 MONTH WOULD BE 4/12 SINCE THERE ARE 12 MONTH IN 1 YEAR

DIVIDE BY 100 FOR INTEREST SHOWN

AND MULTIPLY TO SOLVE

Answer 2

Answer: $36

Explanation:

When taking a loan from a bank, we have to pay interest. The Simple Interest Formula is:

Simple Interest (I) = Principal (P) × Interest Rate (r) × Time (t)

Principal (P) is the borrowed amount.

Interest Rate (r) is the percent of the principal to be paid.

Time (t) is the length of time that money is borrowed.

If Ms. Delilio borrowed $1,200 at an interest rate of 12% per year, for 3 months:

First, we have to convert 3 months into years

3 months = 3/12 =0.25 years

Then, find the interest by using the formula

Simple Interest (I) = Principal (P) × Interest Rate (r) × Time (t)

In this example

P = $1200

I = 12%

t = 0.25 years

Then:

I = 1200 × 0.12 × 0.25

I = 36