Question
Karen borrowed money from a loan shark at an interest rate of 114% APR. Karen paid the loan shark $12150.00 back after 25 months (after being threatened a few times).
What will be the time in the formula be for this calculation?
How much money did Karen borrow?
What will be the time in the formula be for this calculation?
How much money did Karen borrow?
Answers
Henry
P = Po + Po*r*t.
r = 1.14/12 = 0.095/mo. = Monthly % rate.
12,150 = Po + Po*0.095*25, Po = ?.
r = 1.14/12 = 0.095/mo. = Monthly % rate.
12,150 = Po + Po*0.095*25, Po = ?.