Question

Suppose you obtain a $1,300 T-note with a 9% annual rate, paid monthly, with maturity in 6 years. How much interest will be paid to you each month?

Answer 1

Answer:

simple interest  = $9.75

Step-by-step explanation:

given data:

Principle = $1300

annual rate  = 9% $= \frac{9}{`12} = 0.75$

time = 6 year =

we knwo that simple interest is given as

Simple interest $= \frac{P\times R\times T}{100}$

FOR ABOVE QUESTION

Time is 1 month

simple interest  $= \frac{1300\times 0.75 \times 1}{100}$

simple interest  = $9.75

Answer 2

We know that,
Interest, I = $\frac{P×R×T}{100}$
Where, P = Principal = $1300
R = rate of interest = 9% annually = $\frac{9}{12}$%
T = Time  = 1 month

So, I = $\frac{1300×[tex] \frac{9}{12}$×1}{100} [/tex]
        = $9.75

Interest paid per month is $9.75