Problema Solution
If lexi borrows $950 for 6 months at a simple interest rate of 7% per year. How much interest will she have to pay for this loan?
Answer provided by our tutors
P = $950 principal
r = 0.07 or 7% annual interest
t = 6/12 = 0.5 years
I = the interest she needs to pay
I = P*r*t
I = 950*0.07*0.5
I = $33.25