Question

mrs. Anderson borrows 1600 at a rate of 5% per year. how much simple interest will she pay if it takes 10 months to repay the loan

Answer 1

Simple interest can be calculated as I = Prt (where p is principle amount, r is the annual rate, and t is time for borrowing).

So: P = 1600, r = 0.05, and t = 10/12 (we convert months into years because the rate is given as annual figure).

So: I = 1600(0.05)(10/12)

I = 66.67