Answer: The amount that she would owe is $1284.94
Explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
From the information given,
P = $1245
R = 3.5%
T = 11 months. Converting to years, it becomes 11/12 year
Therefore,
I = (1245 × 3.5 × 11)/12 × 100
I = 47932.5/1200 = $39.94
The amount that she would owe after 11 months is
1245 + 39.94 = $1284.94