(I actually added 20 points to this but it's showed as less. If I have help with this one I'll ask another question but it'll be a simple one with higher points added. Thank you c: )Question 1. Darlene will borrow $2200 at 15% APR. She will pay it back in 12 months. How much interest will she pay? Use the table. A. $154.00B. $286.00C. $330.00D. $412.50Question 2. Maribel will borrow $6250 at 13.5% APR She chooses to pay it back in 2 years. What will her monthly payment be? Use the table. A. $212.13B. $292.75C. $295.69D. $298.63
Accepted Solution
A:
Question 1 According to the table for a time of 12 months and at a rate of 15%, the interest per $100 is $15. Therefore, for a principal of $2200 the interest will be (2200/100) × 15 = $ 330
Question 2 At a rate of 13.5% the interest per $100 is $ 4.778 per month. Therefore, for two years the payment will be $4.778 × 24 = $114.672 per $ 100 Therefore, the interest for a principal $6250 for two years; (6250/100) × 114.672 = $7167 The monthly payment would therefore be 7167/24 = $298.625 ≈$298.63