Answer:
a. How much will she have to pay back at the end of the 1 year?
Answer: $540
b. How much interest does she have to pay?
Answer: $40
Explanation:
Simple interest for any amount p is given by
SI = p*r*t/100
where r is the annual rate rate of interest
t is the time
____________________________________________
Given
p= $500 (loan taken)
r = 8%
t = 1 year
SI = 500*8*1/100 = 40
Thus, $40 is the interest charged in a year.
Total money paid at the end of one year = loan taken + interest charged
= $500 + $40
= $540
a. How much will she have to pay back at the end of the 1 year?
Answer: $540
b. How much interest does she have to pay?
Answer: $40