Question

Alejandro wants to take out a loan from his bank for $1,000 to buy a bicycle. The interest rate on the loan from the bank is 9%. He wants to pay the total amount in 3 monthly payments. What is the amount that Alejandro would pay in interest for his loan?

Answer 1

1000x 9%x3/12
=1000x0.09x0.25
=90x0.25
=22.5
1000+22.5
=1022.5
Alejandro would pay $1022.50 in interest for his loan.