Colin needs to borrow $1,500 for car repairs. How much interest will he pay if the rate is 4.9% and he has 125 days to repay the loan? (Be sure to round the time to the nearest hundredth. Example: 250 days divided by 365 days is .68, not .684.)

Mathematics · High School · Thu Feb 04 2021

Answered on

Given :

Principal = $1500

Rate = 4.9%

Time = 125 days or 125/365 years

Interest = (P × R × T)/100

= $1500 × 4.9/100 × 125/365

= $15 × 4.9 × 0.34

= $24.99 or $25