Question

Emily's car broke down the weekend before she started a new job. She borrowed $880 from her parents, at an annual interest rate of 3%, to quickly pay for the car repairs. If Emily paid her parents a total of $893.20 in six months, how much simple interest did she pay?

Answer 1

$13.2

Explanation:

Step one:

given data

principal=$880

rate= 3%

final amount = $893.2

time t= 6 months =0.5 years

Step two:

Required

Simple interest

SI=PRT/100

SI=880*3*0.5/100

SI=1320/100

SI=13.2

She paid Simple interest of $13.2