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zhannawk [14.2K]
3 years ago
5

Paula Purchaser borrowed $500 at 12 percent for one year. She paid a $25 processing fee.

Mathematics
2 answers:
Rzqust [24]3 years ago
3 0
I=(p)(r)(t)
I=(525)(.12)(1)
I=63

You have to add the $500 and the $25 first
The t will always be in years
gayaneshka [121]3 years ago
3 0
You will need the formula for the total loan payment.  (See attached).

rate(for this formula) = rate/1,200
n=12 months

Total = [(rate*principal)/(1-(1+rate)^-n))]*n
Total = [(.01*500)/(1-(1.01)^-12]*12
Total = [5 / (1 -<span><span><span>0.8874492253 </span> </span> </span> <span><span> </span> </span> <span><span> </span> </span> <span>] * 12
</span> Total = [5 /  <span> <span> <span> 0.1125507747 </span> </span> </span> <span><span> </span> </span> <span>] * 12
Total = </span> <span> <span> <span> (44.4243943392) * 12
</span></span></span>Total = <span> <span> <span> 533.09</span></span></span>
The interest is 33.09 which I'm guessing does not include the $25 processing fee.
<span>
</span>

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