Margo borrows $400, agreeing to pay it back with 8% annual interest after 7 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

Question

Punkin

Mathematics

1 August, 05:33

Margo borrows $400, agreeing to pay it back with 8% annual interest after 7 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

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Miles Clay · Answer 1

Using the formula I=Pxrxt

P is the principal amount, $400.00.

r is the interest rate, 8% per month, or in decimal form, 8/100=0.08.

t is the time involved, 7 ... month (s) time periods.

Since your interest rate is "per month" and you gave your time interval in "month (s) " we need to convert your time interval into "month" as well.

So, t is 7 ... month time periods.

To find the simple interest, we multiply 400 * 0.08 * 7 to get thThe interest is: $224.00