Question

Margo borrows $500, agreeing to pay it back with 3% annual interest after 14

months. How much interest will she pay?
Round your answer to the nearest cent, if necessary.

Answer 1

17.5

Explanation:

Answer 2

`\$17.50`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Final Interest to pay

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=(14)/(12)\ years\\ P=\$500\\r=3\%=3/100=0.03`

substitute in the formula above

`I=500(0.03)((14)/(12))`

`I=\$17.50`