Question

A health-food store owner buys new products for his store by borrowing against a credit line of $4,500 from one of his wholesale suppliers. He is usually given 9 months to pay the money back. The store owner borrows the full amount and is told by the supplier that his monthly payments will be $600 a. How much did the distributor pay back altogether? How much in interest did the distributor pay for the loan?​

Answer 1

Answer:

Loan Amount= $4500

Monthly Payment= $600

9 months= $600*9= $5400

Interest = $5400-$4500= $900