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vova2212 [387]
2 years ago
14

Sharon borrowed $750 at 12% for one year. She paid a $20 processing fee. How much will she pay in interest?

Mathematics
1 answer:
Hunter-Best [27]2 years ago
8 0

Answer:

$90

Step-by-step explanation:

The principal amount in the loan taken by Sharon is $750 . Note hat the $20 processing fee is a one time cost and is not included in the interest calculation.

Annual Rate of interest offered to Sharon is 12%

Time interval for the loan transaction is 1 year.

So the interest for 1 year is given by \[Principal * Rate * Year /100\]

\[750 * 12 * 1 /100\] = $90

So, Sharon will have to pay $90 as interest for the loan amount $750 borrowed for one year at the rate 12%.

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