Answer:
The exact interest on $5,870 at 12% is $410.9
Step-by-step explanation:
From the information provided we know that
Principal amount: $5,870
Interest rate: 12% -> 0.12
Time: 7 months (From June to December)
When you know the principal amount, the rate, and the time, the amount of interest can be calculated by using the formula:
[tex]I=P\cdot r\cdot t[/tex]
where P is principal, r is the rate of interest and t is the time in years.
We need to convert the 7 months into 1 year.
[tex]7 \>months \cdot \frac{1 year}{12 months} = \frac{7}{12} year[/tex]
Now we can use the above formula
[tex]I=P\cdot r\cdot t=5870\cdot 0.12 \cdot \frac{7}{12} \\I = 0.12\cdot \frac{7\cdot \:5870}{12}\\I = 0.12\cdot \frac{20545}{6}\\I = \frac{2465.4}{6}\\I = 410.9[/tex]
Therefore the exact interest on $5,870 at 12% is $410.9
