Question

Margo borrows $200, agreeing to pay it back with 4% annual interest after 16 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

Answer 1

Answer:

Interest I = $10.67

Step-by-step explanation:

Simple interest I = principal × rate × time

I = Prt

Given;

Principal P = $200

rate r = 4% = 0.04

time t = 16 months = 16/12 years

Substituting the given values;

I = $200 × 0.04 × 16/12

I = $10.66666666666

I = $10.67

She will pay $10.67 interest.