Question

Mitsu borrowed $1,250. She made 36 payments of $45.15 each. Howmuch did she pay in interest?a. $375.40b. $162.54c. $1,625.40d. $37.54

Answer 1

Amount borrowed = $1,250

Amount paid per payment = $45.15

Number of times payment was made = 36

This implies

The total amount paid is

`36*\text{\$}45.15=\text{\$}1625.40`

Hence, the total amount paid = $1,625.40

Interest is calculated using

Interest = Total amount paid - Amount borrowed

Hence, the interest is

`\begin{gathered} I=\text{\$}1625.40-\text{\$}1250 \\ I=\text{\$}375.40 \end{gathered}`

Therefore, the interest she paid is $375.40