carolyn borowed $125 if the interest rate is 1.5% per month on the unpaid balance and she does not pay this debt for 1yr how much interest will she owe at the end of the year
$125 x 0.15 = $18.75/per month
then multiply by 12 months = $225 is the
amount of interest she owes at the end of the year.
Total balance is: $125 + $225 = $350
To calculate the amount of interest Carolyn will owe at the end of the year, we need to determine the interest accrued each month and sum them up.
First, let's calculate the interest rate for each month. Since the interest rate is given as 1.5% per month, we can convert it to a decimal by dividing it by 100: 1.5 / 100 = 0.015.
Next, we'll calculate the interest accrued each month. To do that, we multiply the outstanding balance at the beginning of each month (including any previous interest) by the monthly interest rate.
Month 1:
Outstanding balance = $125
Interest accrued = $125 * 0.015 = $1.875
Month 2:
Outstanding balance = $125 + $1.875 = $126.875
Interest accrued = $126.875 * 0.015 = $1.903125
Continue this process for the remaining 10 months, calculating the outstanding balance and interest accrued.
Month 3:
Outstanding balance = $126.875 + $1.903125 = $128.778125
Interest accrued = $128.778125 * 0.015 = $1.931671875
...
(continue for the remaining 10 months)
Finally, sum up all the interest accrued over the 12 months to find the total interest owed at the end of the year.
Total interest accrued = (Interest accrued in Month 1) + (Interest accrued in Month 2) + ... + (Interest accrued in Month 12)
Add up all the individual interest amounts calculated in each month to find the total interest accrued.