To calculate the interest Carla paid for the loan, we can use the formula:
Interest = Principal x Rate x Time
Where:
Principal = $1,400
Rate = 9.75% or 0.0975 (decimal form)
Time = 3 months
Interest = $1,400 x 0.0975 x 3
Interest = $1,400 x 0.2925
Interest = $409.50
Carla paid $409.50 in interest for the loan.
Carla borrowed $1,400 for three months at 9.75% interest. How much
interest did she pay for the loan?
1 answer