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matrenka [14]
3 years ago
11

Margo borrows $500, agreeing to pay it back with 3% annual interest after 14

Mathematics
1 answer:
Akimi4 [234]3 years ago
4 0

Answer:

\$17.50

Step-by-step explanation:

we know that

The simple interest formula is equal to

I=P(rt)

where

I is the Final Interest to pay

P is the amount of money borrowed

r is the rate of interest  

t is Number of Time Periods

in this problem we have

t=\frac{14}{12}\ years\\ P=\$500\\r=3\%=3/100=0.03

substitute in the formula above

I=500(0.03)(\frac{14}{12})

I=\$17.50

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