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Emma takes out a loan of $600 to pay for an online course. Simple interest is charged at 7% per year. if she repays the loan in 9 months, how much interest does she pay in total?

give your answer rounded to two decimal places.​

User Lepike
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1 Answer

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First, we need to convert the loan repayment period to the same unit as the interest rate. The interest rate is 7% per year, which is equivalent to 0.07/12 = 0.00583 per month.

The total interest paid is given by:

interest = principal x rate x time

Where principal is the amount of the loan, rate is the interest rate per month, and time is the loan repayment period in months.

Substituting the given values, we get:

interest = $600 x 0.00583 x 9

interest = $31.35

Therefore, Emma will pay a total interest of $31.35 on the loan.

User Bojan Vukasovic
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