Norma borrowed $1,800 at 11% interest for 90 days. How much interest
did she pay on the loan?
a. $49.50
b. $198
c. $2
d. $18.45
49.50
I = PRT
I = 1,800 * 0.11 * 0.25
Well, loaning money can be quite the circus act! Let's calculate the interest for Norma's loan.
First, we need to find the simple interest using the formula: Interest = Principal × Rate × Time.
The principal amount borrowed is $1,800, the interest rate is 11%, and the time period is 90 days. Let's plug those numbers in and see what we get!
Interest = $1,800 × 11% × 90/365
Calculating this gives us $443.84. But wait, clowning around with numbers isn't fun without rounding! So, rounding to the nearest cent, the amount of interest Norma pays on the loan is $443.85.
But hey, none of the answer choices match up perfectly. However, the closest option to our answer is $49.50. So let's just assume Norma paid $49.50 in interest. After all, numbers can be quite the tricksters sometimes! So option a, $49.50, seems to be the best fit. Enjoy the show!
To calculate the interest paid on the loan, we can use the formula:
Interest = Principal * Rate * Time
Given:
Principal amount (P) = $1,800
Interest rate (R) = 11% (or 0.11)
Time period (T) = 90 days
Substituting these values in the formula, we get:
Interest = $1,800 * 0.11 * 90/365
Calculating this expression:
Interest = $39.60
Therefore, the correct answer is not one of the options provided. The correct answer is $39.60.
To calculate the interest paid on a loan, you need to multiply the principal amount (the amount borrowed), the interest rate (expressed as a decimal), and the time period (in years).
In this case, Norma borrowed $1,800 at an interest rate of 11% for 90 days. To calculate the interest, you need to convert the time period to years. There are 365 days in a year, so divide 90 by 365 to get the time period in years:
90 days ÷ 365 days/year = 0.2466 years (approx.)
Now you can calculate the interest using the formula:
Interest = Principal * Interest Rate * Time Period
Substituting the given values:
Interest = $1,800 * 0.11 * 0.2466
Calculating this expression:
Interest = $44.77 (approx.)
The interest she paid on the loan is approximately $44.77.
None of the answer choices provided match this amount. So, none of the options a, b, c, or d are correct.