Question

kenneth’s shoe repair shop borrowed 6600$ from a bank at 8% simple interest per annum.how much did he owe the bank at the end of 11 months?

Answer 1

Kenneth owed the bank 5,808$ per annum..

Answer 2

$7084

Explanation:

The formula for Simple interest is P×R×T÷100

P= Principal amount (amount borrowed) $6600, R= Rate 8%, T= Time in years 11/12years

Since the question says for 11months, one has to convert 11months to years which is 11/12years or 0.9166years

Next, insert the figures into the formula to get the interest

6600×8×11/12 ÷ 100

After solving, we get $484 as the Simple interest

To get the amount owed at the end of 11months, we then add the interest $484 and the borrowed amount $6600= $7084