Mr. Fixit wanted to remodel his business, so he got a loan of $4,300, at a rate of 6 percent interest. He paid this loan off in 8 months. Knowing this, what was the total amount of interest Mr. Fixit paid? A. $21.50 B. $172 C. $258 D. $358
Mathematics · High School · Tue Nov 03 2020
llm
Answered on
Formula used :
A = P + I
And, A = p(1+R/100)^t
Given:
P = $4300
R = 6%
T = 8 months
So, A = 4300(1 + 6/12 ×100)^8
{1month=1/12year}
A = 4300(1 + 0.005)^8
A = 4300 × 1.04
A =$ 4472
Now, we need to find interest I
I = A - P
I = $(4472 - 4300)
I = $172
Thus, the amount of interest Mr. Fixit paid is $172.