Rita borrowed $1,600 at 12% interest for 90 days. How much interest
did she pay on the loan?
a. $1640
b. $48
c. $192
d. $80
d. $80
To calculate the interest, use the formula:
Interest = (Principal x Rate x Time) / (365 or 360)
where Principal = $1,600, Rate = 12%, and Time = 90 days
Plugging in the values, we get:
Interest = (1600 x 0.12 x 90) / 360 = $80