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Margo borrows $700, agreeing to pay it back with 3% annual interest after 17 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

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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.

User Shivansh Gaur
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