Question

You are tired at the end of the term and decide to borrow $500 to go on a trip to Whatever Land. You go to the bank and borrow the money at an annual rate of 11% for 6 months. Find the interest you will pay on the loan.

Answer 1

$27.5

Explanation:

P =$500, R = 11 pcpa, T = 6 months = 1/2 years

`I = (PRT)/(100) = (500 * 11 * (1)/(2) )/(100) \\ \\ = 5 * 11 * (1)/(2) \\ \\ = 55 * (1)/(2) \\ \\ I= \$ 27.5`