Question

Evan was carrying forward a balance of $300 from the previous month. His annual interest rate is 30%. Use computation to determine the interest charged for this month

Answer 1

The interest charged for this month is $7.5

Explanation:

Given:

Principal = $300

Interest = 30%

Time = 1 month

To Find:

The interest charged for this month = ?

Solution:

we know that the interest charged =
`principal * \text {Interest rate} * time`

1 month can also be written as
`(1)/(12)`

Substituting the values,

interest charged:

=>
`300 * 30%  * (1)/(12)`

=>
`300 * (30)/(100) * (1)/(12)`

=>
`300 * (3)/(120)`

=>
`(900)/(120)`

=>
`(30)/(4)`

=>
`(15)/(2)`

=> 7.5