Question

The local shelter decided to build an addition for cats hey borrowed $6300 from a local bank at a rate of 8% the high school held a fundraiser that allowed the shelter to pay off the loan after only 9 months how much interest did the shelter pay on this loan

Answer 1

$378

Explanation:

To find the interest that the shelter payed on this loan, we use the formula:
`I=Prt`.

P = $6,300

r = 8% or 0.08

t = 9/12

Now we substitute the values into our formula.

`I=Prt`.

`I=6,300(0.08*(9)/(12))`

`I=6,300(0.08*0.75)`

`I=6,300(0.06)`

`I=$378`

So the shelter payed a total of $378 in interest to the bank.