Answer:
$121.5
Explanation:
Interest is calculated using the formula.
I= P x R x T
for Kevin's case
P is the principal = $1200
R is the interest rate =18% per year
T is 9 months.
the applicable interest rate will be for 9 months
Therefore, r = 18/12 x 9
=1.5 % x 9 = 13.5%
Time is 9 months which = 9/12 of one year = 0.75
I= $1200 x (13.5/100) x 0.75
I = 1200 x 0.135 x 0.75
I=121.5
Kevin will pay Interest of $121.5
