Question

If you borrow $60.00 at 10% interest, how much will you pay in one month?

Answer 1

In one month we have to pay an interest of $0.5.

Explanation:

We are given that you borrow $60.00 at 10% interest and we have to find how much we have to pay in one month.

Let the Principal sum of money = P = $60

the rate of interest = R = 10%

Time period = T =
`(1)/(12)`

Assuming the interest is simple interest, so the formula for simple interest is given by;

Amount = Principal + Simple interest

A = P + (
`\frac{\text{P}* \text{R}* \text{T}}{100}` )

A =
`60 + (60 * 10 * 1)/(100 * 12)`

A = 60 + 0.5 = $60.5

So, in one month we have to pay an interest of $0.5.