Margo borrows 1000 agreeing to pay it back with 3 annual int

Margo borrows $1000, agreeing to pay it back with 3% annual interest after 7 months. How much interest will she pay?

Round your answer to the nearest cent, if necessary.

$

Solution

given

Margo borrows $1000, agreeing to pay it back with 3% annual interest after 7 months

p =1000 , r=3%=0.03 per year , t =7 months

Interest I =p r t

I=1000*(0.03)(7/12)

I=17.50$

17.50$ interest she will pay