Question

Helen borrowed $2,500 for home repairs. She paid back 24 payments of$115 each. How much did she pay in interest on the loan?a. $108.96b. $4.79c. $2,760d. $260

Answer 1

To solve this problem, we will compute the total amount Helen paid back and we will subtract $2,500 from it.

To determine the total amount she paid back we multiply the number of payments by the amount of each payment:

$T=24\times115\text{dollars}=2760\text{ dollars.}$

Subtracting $2,500 from the above result we get:

$2760-2500=260\text{dollars.}$

Answer: Option d.