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3 years ago

Gwen takes out a loan of $400 to pay for an online course. Flat rate interest is charged at 8% p.a

Mathematics

1 answer:

puteri [66]3 years ago

5 0

We know, 1 year = 12 month.

So, 3 month = 3/12 = 0.25 year.

Now, principle amount, P = $400 .

Rate is, r = 8% = 0.08

Time period, t = 0.25 year.

Now, Interest is given by :

I = P × r × t

I = $( 400 × 0.08 × 0.25 )

I = $8

Therefore, she will pay $8 interest in total.

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