Math CentralQuandaries & Queries


Question from Mary:

How much interest do you pay if the charges 0.12% over 3 years loan $4999

HI Mary,

If the interest rate is 0.12% PER YEAR then each year you would pay $ \large \frac{0.12}{100}\normalsize \times \$4999 = \$6.00$ in interest.

Make sure the interest rate is really 0.12%. This looks unusual to me.


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