To calculate the interest that Margo will pay, we first need to determine how much interest she will accrue over the 17-month period.
We can use the formula:
Interest = Principal x Rate x Time
Where:
Principal is the amount borrowed, which is $700 in this case.
Rate is the annual interest rate, which is 3% or 0.03 as a decimal.
Time is the time period expressed in years, which is 17/12 or 1.4167 years in this case (since there are 12 months in a year).
Therefore, the interest that Margo will pay can be calculated as:
Interest = $700 x 0.03 x 1.4167
Interest = $29.75
So Margo will pay $29.75 in interest. Rounded to the nearest cent, the answer is $29.8.