If you purchase an item for $1,294 at an interest rate of 9.8%, and you finance it for 1 year, how much is the amount of add-on interest? (Round your answer to the nearest dollar.)

Question

If you purchase an item for $1,294 at an interest rate of 9.8%, and you finance it for 1 year, how much is the amount of add-on interest? (Round your answer to the nearest dollar.)
$ 1

Henry · Answer

Int. = Po*r*t = 1294*0.098*1 = $127.