Margo borrows $1200, agreeing to pay it back with 5% annual interest after 14 months. How much interest will she pay?

Round your answer to the nearest cent, if necessary.

To calculate how much interest Margo will pay, we can use the simple interest formula:

\[
I = P \times r \times t
\]

Where:
- $I$ = interest
- $P$ = principal (the initial amount borrowed)
- $r$ = annual interest rate (as a decimal)
- $t$ = time (in years)

Given:
- $P = 1200$
- $r = 5\% = 0.05$
- $t = 14 \, \text{months} = \frac{14}{12} \, \text{years}$

Now, calculate the interest:

\[
I = 1200 \times 0.05 \times \frac{14}{12}
\]

Let's solve this.The interest Margo will pay is **$70.00**.

Would you like more details, or do you have any questions?

Here are 5 related questions to explore:
1. How much will Margo pay in total, including the principal and interest?
2. What would the interest be if the interest rate was 6% instead of 5%?
3. How much interest would Margo pay if she borrowed the money for 18 months instead?
4. What would be the total interest if Margo paid compound interest instead of simple interest?
5. How long would it take for the interest to reach $100 at the same rate?

**Tip:** When calculating interest for time periods that are not full years, always convert months into a fraction of the year!

Margo borrows $1200, agreeing to pay it back with 5% annual interest after 14 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

Learn how to calculate the simple interest on a loan of $1200 at an annual rate of 5% over 14 months. This problem uses the simple interest formula I = P × r × t and shows how to convert months into fractional years. Suitable for middle school math students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation