To find the simple interest owed when [tex]$330 is borrowed at an interest rate of 7.9% for 10 years, we use the formula for simple interest:
\[ \text{Simple Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (initial amount borrowed).
- \( r \) is the annual interest rate (as a decimal).
- \( t \) is the time the money is borrowed for, in years.
Given the values:
- Principal amount, \( P = 330 \) dollars.
- Annual interest rate, \( r = 7.9\% \) (which is \( 7.9/100 = 0.079 \) as a decimal).
- Time, \( t = 10 \) years.
Let's plug in these values into the formula:
1. Convert the interest rate from a percentage to a decimal:
\[ r = \frac{7.9}{100} = 0.079 \]
2. Multiply the principal amount by the interest rate and the time:
\[ \text{Simple Interest} = 330 \times 0.079 \times 10 \]
3. Calculate the multiplication:
\[ \text{Simple Interest} = 330 \times 0.079 \times 10 = 260.7 \]
Therefore, the simple interest owed is $[/tex]260.7.
