Question

Jeanne loans her friend $500.00 at 7% simple interest per year. How much interest will jeanne earn in eight months ?

Answer 1

Answer: $23.33

Explanation:

500(loan) x 8/12(8 months at a yearly interest) = 1000/3

1000/3 (above answer) x 7%(interest rate) = 23.33333333, which rounds to $23.33 as your answer.