Sam borrows $1,000 from a bank that is charging eight percent simple interest per year. If he pays the loan back in six months, how much interest will he pay?

8% : 2 = 4% = 0.04 0.04 × $1 , 000 = $40 ← an s w er

Answered by Anonymous | 2024-06-10

Sam will pay $40 in interest on his $1,000 loan at an 8% annual interest rate when he pays it back in six months. This is calculated using the simple interest formula, which takes into account the principal, rate, and time. The steps include identifying the values, substituting them into the formula, and calculating the result.
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Answered by Anonymous | 2024-10-01