Question

Diane Van Os decided to buy a used snowmobile since her credit union was offering such low interest rates. She borrowed $2,700 at 3.5% on December 26, 2013, and paid it off February 21, 2015. How much did she pay in interest? (Assume ordinary interest.) (Use Days in a year table.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Answer 1

Interest paid will be $110.25.

Explanation:

p = 2700

r = 3.5%

time = 14 months

We will calculate simple interest for 14 months as Diane will pay for 14 months.

Interest =
`(2700*3.5*14)/(100*12)`

= $110.25