Respuesta :
Answer:
$18.
Step-by-step explanation:
We have been given that Joe borrowed $900 from Sam for six months. The interest rate charged by Sam is 4%.
We will use Simple interest formula to solve our given problem.
[tex]I=PrT[/tex], where,
[tex]I=\text{Simple interest}[/tex],
[tex]P=\text{Principal amount}[/tex],
[tex]r=\text{Interest rate in decimal form}[/tex],
[tex]T=\text{Time in years}[/tex].
Let us convert our given rate in decimal form.
[tex]4\%=\frac{4}{100}=0.04[/tex]
12 months = 1 year.
1 month = 1/12 year.
6 months = 6/12 year = 1/2 year = 0.5 year.
Upon substituting our given values in simple interest formula we will get,
[tex]I=900*0.04*0.5[/tex]
[tex]I=900*0.02[/tex]
[tex]I=18[/tex]
Therefore, Sam will earn $18 if he charge Joe a simple interest rate of 4 percent.
