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23 July, 03:07

Juanita borrowed $600 to purchase a new computer. She was charged 7% interest for two years. She used the simple interest formula to find the interest. I = 600 (7) (2) What error did Juanita make and how will her error affect the interest she calculates? Explain.

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  1. 23 July, 05:02
    The correct formula should be I = 600 (0.07) (2). Juanita made a very common error, she didn't put the percentage of interest in decimal form; or she didn't put the percent sign on it so we know to put it in decimal form. Her error will make a big difference; with using her calculations the answer would be $8,400. With the correct formula the answer is $84.
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