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
Using the formula: Interest = Principal x Rate x Time
We have:
Principal = $1,800
Rate = 11% per year (or 0.11 as a decimal)
Time = 90 days (or 0.25 years since there are 365 days in a year)
Interest = $1,800 x 0.11 x 0.25 = $49.50
Therefore, the answer is (a) $49.50.