Question

Please help me and explain to me these questions step by step. Thank youQuestion 8: Use simple interest

Answer 1

Given:

Amount Nicole borrowed = $1100

Annual interest rate = 7%

Duration = 6 months

Let the amount of interest be x

The amount after t years can be calculated using the formula:

`\text{Amount = }P(1\text{ }+\text{ rt)}`

The interest that she would pay can be calculated using the formula:

`\text{Interest = Amount - Principal}`

The amount after 6 months is:

`\begin{gathered} \text{Amount = 1100(1 + 007 }*(6)/(12)) \\ =\text{ 1138.5} \end{gathered}`

Hence, the interest:

`\begin{gathered} \text{Interest = 1138.5 - 1100} \\ =\text{ 38.5} \end{gathered}`

Answer: $38.5