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Sagot :
Answer:
In one year he will pay about $32 in interest
Step-by-step explanation:
Simple Interest
Interest is calculated on the original principal only of a loan or on the balance of an account.
Unlike compound interest where the interest earned in the compounding periods is added to the new principal, simple interest only considers the principal to calculate the interest.
The interest earned is calculated as follows:
I=P.r.t
Where:
I = Interest
P = initial principal balance
r = interest rate
t = time
Steve paid a down payment of $100 for a guitar that costs $500, therefore he stills owes P=$500-$100=$400. This is the principal amount that will be paid at an interest rate of 8% = 0.08. In t=1 year, he will pay in interest:
I = $400*0.08*1
I = $32.
In one year he will pay about $32 in interest
In one year he will pay about $32 in interest
What is the formula for interest earned?
[tex]I=P\times r\times t[/tex]
Where,I = Interest
P = initial principal balance
r = interest rate
t = time
Steve paid a down payment of $100 for a guitar that costs $500.
Therefore, He stills owes
P=$500-$100
P=$400.
This is the principal amount that will be paid at an
Interest rate of 8% = 0.08.
In t=1 year
He will pay in interest:
[tex]I = $400\times 0.08\times 1[/tex]
[tex]I = $32.[/tex]
Therefore ,In one year he will pay about $32 in interest.
To learn more about the simple interest visit:
https://brainly.com/question/25793394
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