To calculate the interest Carmen paid for the loan, we can use the formula:
Interest = Principal x Rate x Time
Where:
Principal = $1,200
Rate = 10.5% or 0.105 (in decimal form)
Time = 3 months
Interest = $1,200 x 0.105 x 3
Interest = $1,260
Therefore, Carmen paid $126 in interest for the loan.
Carmen borrowed $1,200 for three months at 10.5% interest. How
much interest did she pay for the loan?
1 answer
1 answer