Question

6. Didi took out a loan of S12,600 to buy a car. After one month, an interest fee of 0.5% on this

loan is added to what she owes. After the fee is added, she then makes a payment of $200 to
start paying off her loan.
Given that the interest fee will increase what she owes while the payment will decrease what
she owes, how much money does Didi owe after one month

Answer 1

$12,463

Explanation:

The amount owed after one month is the sum of the original amount and the interest fee, less the amount paid.

__

The interest fee is 0.5% of $12,600, so is ...

0.005 × $12,600 = $63

After her $200 payment, the amount Didi owes is ...

$12,600 +63 -200 = $12,463 . . . owed after 1 month