Question

(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. $154.00
B. $286.00
C. $330.00
D. $412.50

Question 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. $212.13
B. $292.75
C. $295.69
D. $298.63

Answer 1

Question 1: $330.00

Question 2: $298.63

Explanation:

Question 1:

Since, the amount she borrowed i.e. $2200 is for 15% APR, therefore, the total interest from table that she will pay for 12 months at 15% APR is 15.00

Now, let for amount $2200, she will pay 'x' monthly.

`x = (2200).(15)/(100)`

∴
`x =` $
`330.00`

Question 2:

Since, at a rate of 13.5%, the interest per $100 is $ 4.778 per month.

Therefore, for 2 years the payment will be:

`(4.778).(24) = 114.672` per $100

Now, the interest for an amount of $6250 for two years will be:

`=(6250)/(100).(114.672)`

`=` $
`7167`

Therefore, the monthly payment for 2 years will be:

`=(7167)/(24)`

`=` $
`298.625`

≈ $
`298.63`

Answer 2

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