Question

PRACTICE PROBLEMS 7.8 Solve the word problems. 1. Mary Owens borrowed $100 from a loan company for 12 months. She signed a note repay the loan at $10 per month. How much interest did she have to pay?

Answer 1

If she borrows $100

She will repay at rate of $10 per month

She would have paid = 12 x $10 = $120 ( in 12 months)

The interest she has to pay = $120 - $100 = $20