12% of 120 is 14.4
Change the percentage into a decimal by dividing over 100:
12 / 100 = 0.12
Multiply:
0.12 × 120 = 14.4
Part A:
To get the interest of 1 year
Multiply 20,000 by 5% or 0.05
You get $1,000
Thats the amount for 1 year, now to get for 4 years, multiply 1,000, by 4
She pays $4,000 in interest
Part B:
If she pays it off in 2 years, instead of 4 years, she will pay an interest of $2,000, divide 4 by 2
Part C:
This is the same as part b, she saves $2,000
Hope this helps
-GoldenWolfX
The answer for this question is Option B : 12.28
