Question

22. Jamie borrows $2,000 to purchase a new

living room furniture set. She will pay an 8%
interest rate over 18 months. How much will Jamie
pay in interest?

Answer 1

Explanation:

Since this is simple interest we will need to break down these numbers in variables, so we can make an algebraic expression.

`\mathrm{Simple\:interest}= (p*r*t)/(100)`

P= Represents the principal. The principal is the money or amount of something used to buy something with a paid "tax" of a rate and a time.

R= Represents the interest rate. If you do not know where you can find the "r" an example is in this question, it is, "She will pay an 8% interest rate." The interest rate is always in percent.

T= Represents time. Time means days, months, or even years or decades.

1. Plug in the numbers

`\mathrm{Simple\:interest}= (2,000*8*18)/(100)`

This is saying that simple interest is p times r times t. Once you find your answer, divide it by 100 to get your answer. You divide by 100 because it is part of whole and usually whole is 100% maybe of a battery and etcetera.

2. Multiply & Divide

`\\\\\\\\\mathrm{Multiply.\:You\:want\:to\:find\:the\:product\:of\:lower\:numbers\:first.} \\8;18 \\\\(2,000*8*18)/(100)\\\\(2,000(8*18))/(100)\\\\(2,000*144)/(100)\\\\(288,000)/(100)\\\\= \mathrm{Jamie\:will\:pay}\\\\2,800\\\\ \mathrm{in\:interest.}`