Basic College Mathematics (10th Edition)

Published by Pearson
ISBN 10: 0134467795
ISBN 13: 978-0-13446-779-5

Chapter 6 - Percent - 6.7 Simple Interest - 6.7 Exercises - Page 446: 26



Work Step by Step

We can calculate simple interest on a loan by using the formula $I=prt$ (where I is the interest, p is the principal, r is the rate of interest, and t is the amount of time - expressed in years). $t=\frac{1}{2}$, because 6 months equals .5 years $I=prt$ $I=400\times.02\times\frac{1}{2}=4$ dollars Finally, we can find the amount due by adding the interest to the original principal. $400+4=404$ dollars
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