Question

Moe borrowed $700 for 18 months at 8% simple interest.

A. how much interest will Moe have to pay?
B. What will be the total amount he has to pay back?

Answer 1

A-1008

B-1708

Explanation:

8% of 700= 56

56x18=1008

700+1008=1708

Answer 2

Simple interest formula:

Interest = principal x rate x time

Principal = $700

Rate = 8% = 0.08

Time = 18/12 = 3/2

Interest = 700 x 0.08 x 3/2

Interest = $84

Total to pay back = 700 + 84 = $784