Question

Mrs. Hanover borrows $1,413 at a

rate of 5% per year. How much
Simple Interest will she owe if it
takes her 9 months to repay the
loan? Round your answer to the
nearest cent

Answer 1

well, let's recall that a year has 12 months, so 9 months is really 9/12 of a year

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$1413\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\to (9)/(12)\dotfill &(3)/(4) \end{cases} \\\\\\ I = (1413)(0.05)((3)/(4)) \implies I = 1413((3)/(80))\implies I\approx 52.99`