What interest will you pay on a $900 loan for 1 year if the interest rate is 12%?

To calculate the interest you will pay on a loan, you can use the formula:

Interest = Principal × Rate × Time

In this case, the principal (P) is $900, the interest rate (R) is 12%, and the time (T) is 1 year.

Now, let's substitute these values into the formula and calculate the interest:

Interest = $900 × 12% × 1 year

First, convert the percentage rate to a decimal by dividing it by 100:
12% ÷ 100 = 0.12

Then substitute the values into the formula:
Interest = $900 × 0.12 × 1

Multiply the principal, rate, and time:
Interest = $108

Therefore, you will pay $108 in interest on a $900 loan over 1 year with a 12% interest rate.