Question

Teresa borrowed $1,950 to buy a used car. The interest rate is 14.8% per year. If she pays back the full amount in one year, about how much interest will she owe?

Answer 1

The interest is `$288.60`

Explanation:

Because the time period is one year, it does not matter whether it is simple or compound interest.

The simple interest formula is easier to use because it give the interest immediately.

`SI = (PRT)/100`

`SI = (1950 xx 14.8 xx 1)/100`

`SI= $288.60`