if you borrow $85 at 12% for 6 months - how much interest will you pay?

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if you borrow $85 at 12% for 6 months - how much interest will you pay?

2007-03-07 05:12:25 · 3 answers · asked by ncover61 2 in Business & Finance ➔ Personal Finance

3 answers

An $85 debt will grow to $85*(1+.12/1)^6 = $90.23. The $85 in principle plus $5.23 in interest. (My calculation is based on the assumptions that the interest compounds monthly and there are no payments on the debt during the six months.)

2007-03-07 05:19:29 · answer #1 · answered by garyg7 7 · 0⤊ 0⤋

About $3.

2007-03-07 05:16:10 · answer #2 · answered by Texas Girl 3 · 0⤊ 0⤋

Answer is $ 5.10

Interest on $ 85 for 1 year is 85 X .12 = $ 10.20

Interest for each month is $10.20/12 = .85
Interest for 6 months is .85 X 6 = $ 5.10

2007-03-07 05:18:33 · answer #3 · answered by Ronatnyu 7 · 0⤊ 0⤋