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Juliette [100K]
3 years ago
7

Compute the exact interest on $5,870 at 12% if the money is borrowed from June to December of the same year.

Mathematics
1 answer:
yawa3891 [41]3 years ago
7 0

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:

I=P\cdot r\cdot t

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.

7 \>months \cdot \frac{1 year}{12 months} = \frac{7}{12} year

Now we can use the above formula

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

Therefore the exact interest on $5,870 at 12% is $410.9

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