Question

Kelly Joens and Tami Crawford borrowed $15,000 on a 7-month, 8% note from Gem State Bank to open their business, JC's Coffee House. The money was borrowed on June 1, 2022, and the note matures on January 1, 2023. What is the question you would like to ask regarding this scenario?

Answer 1

The interest on the note borrowed by Kelly Joens and Tami Crawford is $700.

Step-by-step explanation:

To calculate the interest on the note borrowed by Kelly Joens and Tami Crawford, we can use the simple interest formula:

Interest = Principal × Rate × Time

Here, the principal amount is $15,000, the rate is 8% (convert to decimal by dividing by 100, so 0.08), and the time is 7 months. Plugging in these values, we get:

Interest = $15,000 × 0.08 × (7/12) = $700

Therefore, the interest on the note is $700.