Answered

Paula Purchaser borrowed $500 at 12 percent for one year. She paid a $25 processing fee.
The interest paid will be?

Verified Answer :

bellestultz1515

I=(p)(r)(t)
I=(525)(.12)(1)
I=63

You have to add the $500 and the $25 first
The t will always be in years

wolf1728

You will need the formula for the total loan payment.  (See attached).

rate(for this formula) = rate/1,200
n=12 months

Total = [(rateprincipal)/(1-(1+rate)^-n))]n
Total = [(.01500)/(1-(1.01)^-12]12
Total = [5 /
(1 -0.8874492253







] 12

Total = [5 /



0.1125507747





] 12
Total =



(44.4243943392) * 12
Total =



533.09
The interest is 33.09 which I'm guessing does not include the $25 processing fee.


View image wolf1728

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