Question

Find the amount of interest payable if $400 is borrowed at 14% interest and is to be repaid in 6 months

Answer 1

The amount of interest payable after 6 months is $28.

Explanation:

Here, the Principal amount borrowed = $400

Rate of Interest = 14%

Time = 6 months = 6 / 12 years = 0.5 year

Now, SIMPLE INTEREST =
`(P * R * T)/(100)`

So, here SI =
`SI = (400 * 14 * 0.5)/(100)   =  28`

or, SI = $28

Hence, the amount of interest payable after 6 months is $28.