Question 20 • FowU - Financial Math - B
Use the simple-interest formula I = Prt. With interest of $300, a rate of 0.025, and 1 year, the amount invested is P = 300 ÷ 0.025 = $12,000. That is Tyrell’s extra interest for the year, so per month he pays $12,000 ÷ 12 = $1,000. The correct choice is $1,000.
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