Q:

(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