Question

Margo borrows $400, agreeing to pay it back with 5% annual interest after 6 months. How much interest will she pay?

Answer 1

$20 of interest. An easy way to think about this problem is first to solve for 10 percent which is easy because you just move the decimal to the left one place, then 5% is half of 10% which is equal to 40 so 40 divided by 2 equals 20

Answer 2

20$ of interest 100 divided by 5= 20$$$$