the interest rate on car loans increase from 8% to 9%. although this is a rise of only 1 percentage point, you will be paying ____% more in interest on you loan. If you interest payment was $400, what would it be with the increase?

Answer 1

1% is 1/8 of 8%

1/8 = 12.5% ... this is the increase

400 * (1 + 1/8) = ?