SOLUTION: A store borrows $3900 at 14% for 90 days. Find the amount of interest due and the totl amount that must be paid after 90 days.

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Question 22213: A store borrows $3900 at 14% for 90 days. Find the amount of interest due and the totl amount that must be paid after 90 days.
Answer by wuwei96815(245) About Me  (Show Source):
You can put this solution on YOUR website!
14% of $3900 = 0.14 x 3900 = $546

However, one must assume that the 14% is an annual rate, but the problem specifies only 90 days.
90 days is approximately 1/4 of a year.
1/4 of 546 = $136.50 interest due.

After 90 days 3900 + 136.50 = $4,036.50 must be paid.