Answer:
-Delia paid $85 in interest.
-The simple interest rate charged by the credit union is 0.85%.
Step-by-step explanation:
To find the interest she paid, first you have to determine the total payment she made and subtract the principal from that amount:
$108.50*10=$1,085
$1,085-$1,000=$85
According to this, Delia paid $85 in interest.
Now, you have to use the following formula to find the simple interest rate charged by the credit union:
r=(1/t)*(A/P-1), where:
r=rate of interest
t=time period=10
A=accrued amount=1,085
P=principal amount=1,000
r=(1/10)*(1,085/1,000-1)
r=0.1*0.085
r=0.0085→0.85%
According to this, the simple interest rate charged by the credit union is 0.85%.
