Question

Hannah borrowed $1500 from the bank at an interest rate of 7%. How much money will she have to pay back in total in 6 months?

Answer 1

• $1552.50

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Use the simple interest formula:

• SI = P × R × T

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.