SOLUTION: Bobby Smith borrowed $6500 for a new car. He will pay it off in 8 months at an annual simple interest rate of 6.5%. How much interest will he pay back? (Round you answer to the nea

Question 1132386: Bobby Smith borrowed $6500 for a new car. He will pay it off in 8 months at an annual simple interest rate of 6.5%. How much interest will he pay back? (Round you answer to the nearest cent)

Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
there are 12 months in one year. Thus, 8 months = 8/12 divide top and bottom by 4: 2/3 So, 8 months equals 2/3 of a year
0.065*6500 = 422.50 interest for the year
Since he only paid interest for 8 months:
422.50*2/3 = 281.667
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