First, we need to calculate the amount of interest Ursula will have to pay for borrowing $2,400 at an annual rate of 10.75%.
To calculate the interest, we can use the formula:
Interest = Principal x Rate x Time
Where:
Principal = $2,400
Rate = 10.75% = 0.1075 (in decimal form)
Time = 3 months = 3/12 = 0.25 year
Now, we can plug in the values:
Interest = $2,400 x 0.1075 x 0.25
Interest = $2,400 x 0.026875
Interest = $64.50
Therefore, Ursula will have to pay $64.50 in interest for borrowing $2,400 for three months at an annual rate of 10.75%.
Ursula borrowed $2,400 for three months at an annual rate of 10.75%
under a single-payment plan. How much interest must she pay?
1 answer
1 answer