Explain how you solved this problem.
2 answers:
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Answer:
The exact interest on $5,870 at 12% is $58.70.
Step-by-step explanation:
Given information:
Principal = $5870
Interest rate = 12% = 0.12
Time = June-December = 7 months.
We know that
1 year = 12 months
1/12 year = 1 month
7/12 year = 7 month
Time = 7/12 year
Formula for simple interest:
where, P is principal, r is rate of interest and t is time in years.
Substitute P=5870, r=0.12 and t=7/12 in the above formula.
Therefore the exact interest on $5,870 at 12% is $58.70.