65.7k views
1 vote
Matthew borrows $200, agreeing to pay it back with a 6% annual interest after 20 months. How much interest will she pay?

User Nhrobin
by
5.2k points

1 Answer

2 votes

Answer:

$20.00

Explanation:

Equation:

A = P(1 + rt)

convert R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Putting time into years for simplicity,

20 months / 12 months/year = 1.666667 years.

sol.

A = 200(1 + (0.06 × 1.666667)) = 220.000004

A = $220.00

The total amount accrued, principal plus interest, from simple interest on a principal of $200.00 at a rate of 6% per year for 1.666667 years (20 months) is $220.00.

Interest: $20.00

User Chandrika
by
5.1k points