Answer:
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Use the simple interest formula:
Here we have:
- Principal (P) = $1500,
- Interest Rate (R) = 7% = 0.07, and
- Time (T) = 0.5 years (6 months).
Find the amount of interest:
- SI = $1500 × 0.07 × 0.5 = $52.50
Find the total amount to be paid back, add the simple interest to the principal:
- $1500 + $52.50 = $1552.50
Hannah will have to pay back a total of $1552.50.