Answer:
She paid $251.40 in interest only for the loan.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
In this problem:
[tex]P = 2095, t = 1, I = 0.12[/tex]
So
[tex]E = 2095*0.12*1 = 251.4[/tex]
She paid $251.40 in interest only for the loan.
