First, we calculate the interest using the formula:
Interest = Principal x Rate x Time
Given:
Principal = $2,200
Rate = 11.25% or 0.1125 as a decimal
Time = 3 months or 3/12 = 0.25 years
Plugging in the values:
Interest = $2,200 x 0.1125 x 0.25
Interest = $2,200 x 0.028125
Interest = $61.88
Therefore, Irene must pay $61.88 in interest.
Irene borrowed $2,200 for three months at an annual rate of 11.25%
under a single-payment plan. How much interest must she pay?
1 answer
1 answer