Jan borrowed $1,200 at 11.5% interest for three months. How much

Question

does she have to repay under a single-payment plan?

Answer 1

First, we need to calculate the interest Jan will owe.

Interest = Principal x Rate x Time

Since Jan borrowed $1,200 at 11.5% interest for three months:

Interest = $1,200 x 0.115 x (3/12) = $34.50

Now we can calculate the total amount Jan has to repay:

Total repayments = Principal + Interest

Total repayments = $1,200 + $34.50 = $1,234.50

Therefore, Jan has to repay $1,234.50 under a single-payment plan.