Question

Valerie took out a loan to pay off some bills. She borrowed $1,200 at an annual interest rate of 9%. How much interest did she pay on the loan the first year?

Answer 1

$108

Explanation:

Step 1: Find the interest. You do this by multiplying the amount borrowed by the interest rate. In this case, you multiply 1,200 by 9% (0.09). 1,200 * 0.09 is $108. That's the amount she paid on the loan in her first year.