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?

Question

asked Jul 22, 2019 96.3k views

2 Answers

ThrawnCA · Answer 1 · 2019-07-28T13:17:58+0000

Answer:

$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.