Question

Ryad borrowed $1,450 and made 18 payments of $95.25. How much did hepay in interest?a. $80.55b. $264.50c. $1,714.50d. $85.85

Answer 1

Given:

The total amount borrowed, P=$1450.

The amount paid for each payment, A=$95.25.

The number of payments made, N=18.

Now, the total amount paid back can be calculated as,

$\begin{gathered} T=N\times A \\ =18\times95.25 \\ =1714.5 \end{gathered}$

The amount paid in interest can be calculated as,

$\begin{gathered} I=T-P \\ I=1450-1714.5 \\ I=264.50 \end{gathered}$

Therefore, the amount paid in interest is $264.5.

Option b is correct.