Question

Stephanie took advantage of the interest-only financing from Rooms-To-Go and borrowed $2,000 with a 15 percent annual interest rate. How much will she have paid in interest after 8 months?

Answer 1

Answer: $200

Explanation

Principal = $2000

Rate = 15%

Time = 8 months = 8/12 = 2/3 years

Interest = Principal × Rate × Time

= 2000 × 15% × 2/3

= 2000 × 15/100 × 2/3

= $200

The interest is $200