Molly borrowed $8,300 for a car at a rate of 7%. What is the amount of interest that she would have to pay back after 1 year? Don't forget that rate MUST be in decimal.

Question

asked Apr 18, 2021 121k views

1 Answer

Simon · Answer 1 · 2021-04-23T20:48:50+0000

Answer:

$581

Explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

I = Prt

P = principal amount

r = interest rate (decimal form)

t = time

The first step is to convert 7% into a decimal:

7% ->
(7)/(100) -> 0.07

Now, plug in the values:

I=8,300(0.07)(1)

I=581

Molly would have to pay back $581 in interest.