Question

Margo borrows $800 agreeing to pay it back with 5% annual interest after 16 months. How much interest will she pay?

Answer 1

she will pay $640 because....

800(.05)= 40

40x16= 640

Answer 2

Answer:

$53.33

Step-by-step explanation:

We are asked to find the amount of interest paid by Margo.

We will use simple interest formula to solve our given problem.

$I=Prt$, where,

I = Amount of interest,

P = Principal amount,

r = Interest rate in decimal form,

t = Time in years.

Let us convert our given rate in decimal form and time in years as:

$5\%=\frac{5}{100}=0.05$

$16\text{ months}=\frac{16}{12}\text{ years}=\frac{4}{3}\text{ years}$

$I=\ 800*0.05*\frac{4}{3}$

$I=\frac{\ 160}{3}$

$I=\ 53.3333\approx \ 53.33$

Therefore, Margo paid $53.33 in interest.