Question

Evan was carrying forward a balance of $300 from the previous month. His annual interest rate is 30%. Use computation to determine the interest charged for this month

Answer 1

Answer:

The interest charged for this month is $7.5

Step-by-step explanation:

Given:

Principal = $300

Interest = 30%

Time =  1 month

To Find:  

The interest charged for this month = ?

Solution:

we know that the  interest charged = $principal \times \text {Interest rate} \times time$

1 month can also be written as $\frac{1}{12}$

Substituting the values,

interest charged:

=> $300 \times 30%  \times \frac{1}{12}$

=> $300 \times \frac{30}{100} \times \frac{1}{12}$

=> $300 \times \frac{3}{120}$

=>$\frac{900}{120}$

=>$\frac{30}{4}$

=>$\frac{15}{2}$

=> 7.5