Margo borrows $900, agreeing to pay it back with 7% annual interest after 9 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

Question

asked Dec 8, 2020 92.1k views

1 Answer

Gcbenison · Answer 1 · 2020-12-15T04:09:42+0000

Answer:

$I=\$47.25$

Explanation:

we know that

The simple interest formula is equal to

I=P(rt)

where

I is the Final Interest Value

P is the amount of money borrowed

r is the rate of interest

t is Number of Time Periods

in this problem we have

$t=9/12\ years\\ P=\$900\\r=0.07$

substitute in the formula above

I=900(0.07(9/12))

$I=\$47.25$