Mitsu borrowed $1,250. She made 36 payments of $45.15 each. How

Question

much did she pay in interest?
a. $375.40
b. $162.54
c. $1,625.40
d. $37.54

Answer 1

To find the total amount paid, we can simply multiply the monthly payment by the number of payments:

$45.15 x 36 = $1,624.40

This is the total amount that Mitsu paid over the course of 36 payments.

To find the amount of interest paid, we need to subtract the original loan amount from the total amount paid:

$1,624.40 - $1,250 = $374.40

So the correct answer is (a) $375.40. (Note that this answer is very close to the actual amount of interest paid, but it seems likely that it is a typo and should be $374.40 instead.)