Question

When Ms. Paul bought a new office phone, she borrowed $1,200 at a rate of 18% for 9 months. How much interest did she pay?

Answer 1

Assuming simple interest, the formula to calculate the interest Ms. Paul paid is:

`Interest=Principal* Rate* Time`

In the problem, here are the given information:

Principal (Money borrowed) = $1,200

Rate = 18% or 0.18 in decimal form

Time = 9 months or 0.75 year.

(Take note that the time in the formula is measured in years.)

Let's plug in the given information to the interest formula above.

`Interest=1,200*0.18*0.75`

Then, solve.

`Interest=162`

Therefore, Ms. Paul paid interest of $162.