Margo borrows $1400, agreeing to pay it back with 7% annual interest after 14 months. How much interest will she pay?
114
To calculate the interest, we can use the formula:
Interest = Principal × Rate × Time
Where:
Principal = $1400
Rate = 7% (or 0.07 as a decimal)
Time = 14 months (or 14/12 years)
Let's plug in the values and calculate the interest:
Interest = $1400 × 0.07 × (14/12)
Interest = $1400 × 0.07 × 1.1667
Interest ≈ $140.00
Therefore, Margo will pay approximately $140.00 in interest.
To calculate the interest Margo will pay, you need to use the formula:
Interest = Principal × Rate × Time
Where:
- Principal is the amount borrowed ($1400 in this case)
- Rate is the annual interest rate (7% in this case)
- Time is the duration in years (14 months in this case)
Since the time given is 14 months, which is not in years, we need to convert it to years. There are two ways to do this conversion:
Method 1: Divide the number of months by 12:
14 months ÷ 12 = 1.17 years (rounded to two decimal places)
Method 2: Divide the number of days by 365 (assuming a year has 365 days), and then divide by 12 (assuming each month has an equal number of days):
14 months × 30.44 days (average number of days in a month) = 426.16 days
426.16 days ÷ 365 days = 1.17 years (rounded to two decimal places)
Now that we have the time in years (1.17), we can calculate the interest:
Interest = $1400 × 0.07 × 1.17
Interest = $1400 × 0.0819
Interest ≈ $114.66
Therefore, Margo will pay approximately $114.66 in interest.
I assume you want simple interest.
I = PRT
= 1400(.07)(14/12) = ...