multiply 1845 X 12, then divide by 100?

Question

A fertilizer bill in the amount of $1,845 was due on May 15, but the farmer was not able to make payment until July 6. If the dealer charges 12 percent interest on overdue bills, what amount was due on July 6 (ordinary interest)?

Answer 1

The interest alone is

 

(12/100)($1845) = $221.40

 

The total due is the original bill plus the interest, which is

 

$1845 + $221.40