Verified Answer :

I believe that the question is assuming this is taking place over one month here is what I think you would do.

1) 75/12.5 = 6
2) add that answer to 75, so 75+6, and you get 81

Answer:

$ 84.38

Step-by-step explanation:

Assuming the interest rate as monthly, he has to pay $ 84.38 after one month.

Because, if the interest rate is 12.5 %, that means $ 9.38 extra the initial $ 75.

Then, you need to add $ (75 + 9.38) = $ 84.38.