Question

Suppose you obtain a $1,300 T-note with a 9% annual rate, paid monthly, with maturity in 6 years. How much interest will be paid to you each month?

Answer 1

We know that,
Interest, I =
`(P×R×T)/(100)`
Where, P = Principal = $1300
R = rate of interest = 9% annually =
`(9)/(12)`%
T = Time = 1 month

So, I =
×1}{100} [/tex]
= $9.75

Interest paid per month is $9.75

Answer 2

simple interest = $9.75

Explanation:

given data:

Principle = $1300

annual rate = 9%
`= (9)/(`12) = 0.75`

time = 6 year =

we knwo that simple interest is given as

Simple interest
`= (P* R* T)/(100)`

FOR ABOVE QUESTION

Time is 1 month

simple interest
`= (1300* 0.75 * 1)/(100)`

simple interest = $9.75