Find the interest. Round to the nearest cent. $130 at 6.8% for 11 months A) Interest = $97.20 B)...

Question:

Find the interest. Round to the nearest cent.

$130 at 6.8% for 11 months

A) Interest = $97.20

B) Interest = $8.10

C) Interest = $810.00

D) Interest = $0.80

Interest

Interest refers to the incurred charges/gain of a certain sum of money as compensation of providing capital to the other party or investing. Interest is represented by a percentage in which is considered as the price of the money.

Answer and Explanation:

Formula on calculating the interest:

{eq}Interest=P*r*\frac{m}{t}\\ whereas:\\ P=principal\\ r=interest~rate\\ m=number~of~months\\ t=total~months~in~a~year\\ {/eq}

{eq}\begin{align*} Interest&=130*.068*\frac{11}{12}\\ &=130*.068*.9167\\ &=8.10 \end{align*} {/eq}

The total earned interest of the $130 at 6.8% in 11 months is B. Interest = $8.10


Learn more about this topic:

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How to Calculate Interest Expense: Formula & Example

from Financial Accounting: Help and Review

Chapter 5 / Lesson 18
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