The annual interest rate is 8.2%.
Hence,
the four-month interest rate will be:
[tex]\frac{8.2}{3}=2.73\%[/tex]In decimal, that is 0.0273
Let's calculate 2.73% of $1550. Shown below:
[tex]1550\times0.0273=42.32[/tex]The closest answer choice, is Answer Choice "A".
Thus,
Kathy needs to pay $42.37 in interest.
AnswerA