Question

Simple interest = P × r × t

Joe borrowed $900 from Sam for six months. How much will Sam earn if he charges Joe a simple interest rate of 4 percent?

Answer 1

700 times 2 is right nothing besides that makes sense 

Answer 2

$18.

Explanation:

We have been given that Joe borrowed $900 from Sam for six months. The interest rate charged by Sam is 4%.

We will use Simple interest formula to solve our given problem.

`I=PrT`, where,

`I=\text{Simple interest}`,

`P=\text{Principal amount}`,

`r=\text{Interest rate in decimal form}`,

`T=\text{Time in years}`.

Let us convert our given rate in decimal form.

`4\%=(4)/(100)=0.04`

12 months = 1 year.

1 month = 1/12 year.

6 months = 6/12 year = 1/2 year = 0.5 year.

Upon substituting our given values in simple interest formula we will get,

`I=900*0.04*0.5`

`I=900*0.02`

`I=18`

Therefore, Sam will earn $18 if he charge Joe a simple interest rate of 4 percent.