Question

Find the amount of interest payable if $400 is borrowed at 14% interest and is to be repaid in 6 months

Answer 1

Answer:

The amount of interest payable after 6 months is $28.

Step-by-step explanation:

Here, the Principal amount  borrowed = $400

Rate of Interest  = 14%

Time = 6 months  = 6 / 12 years  = 0.5 year

Now, SIMPLE INTEREST = $\frac{P \times R \times T}{100}$

So, here SI  = $SI = \frac{400 \times 14 \times 0.5}{100} = 28$

or, SI = $28

Hence, the amount of interest payable after 6 months is $28.