if you borrow $85 at 12% for 6 months - how much interest will you pay?

Question

i need the formula for figuring the answer

Answer 1

Why bother borrowing $85? Just mug an old lady.

The monthly payment can be found by using the following formula:

P = (Pv*R) / [1 - (1 + R)^(-n)]

where

Pv = Present Value (beginning value or amount of loan)
APR = Annual Percentage Rate (one year time period)
R = Periodic Interest Rate = APR/ # of interest periods per year
P = Monthly Payment
n = # of interest periods for overall time period (i.e., interest
periods per year * number of years)