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Find the interest

Amount Borrowed
$500

APR
13.5% (3.974)

Months
6

Amount paid per month
$86.65

1 Answer

3 votes

Answer:

$33.75

Explanation:

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 13.5%/100 = 0.135 per year,

Put time into years for simplicity,

6 months ÷ 12 months/year = 0.5 years,

then, solving our equation

I = Prt

I = 500 × 0.135 × 0.5 = 33.75

I = $ 33.75

The simple interest accumulated

on a principal of $ 500.00

at a rate of 13.5% per year

for 0.5 years (6 months) is $ 33.75

User John Little
by
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