Question

Margo borrows $1400, agreeing to pay it back with 6% annual interest after 16 months. How much interest will she pay?

Answer 1

Given,

The principal amount is $1400.

The rate of interest is 6%.

The time period is 16 months.

Required

The interest paid by Morrow.

The simple interest is calculated as,

`Simple\text{ interest=}(P* R* T)/(100)`

Substituting the values then,

`\begin{gathered} S.I=(1400*6*16)/(100*12) \\ S.I=14*2*4 \\ S.I=56*2 \\ S.I=112 \end{gathered}`

Hence, the interest she will pay is $112.