SOLUTION: Alex borrows $500 for 24 months. The interest rate is 9% per year. How much interest must Alex pay?

Question 532322: Alex borrows $500 for 24 months. The interest rate is 9% per year. How much interest must Alex pay?

Answer by rosey51235(30) (Show Source): You can put this solution on YOUR website!
Well, to start, you ought to know the formula to find interest, which is i=prt, where...
i=interest
p=principle (amount of money)
r=rate (percentage rate of interest, expressed as a decimal)
t=time (length of money borrowed/loaned in terms of YEARS)

So, if we're finding the Interest Alex would owe at the end of this 24 months, we should start by filling in what we have for the formula.
Principle we have, it's $500 (as you stated in the question).
We also have Rate, 9% which, expressed as a decimal, is .09 (the decimal form should be used, NOT the percent.)
As for the time, since it is always expressed in years, we have to turn 24 months into a timespan of years. 24 months = 2 years, therefore our time is 2 years.

So far, the formula should be filled in as: i=500*.09*2

Lastly, just solve! you can group numbers together to make mental math easier, or just use a calculator. It equals out at $90...this is how much interest Alex would have to pay ALONG WITH his original borrowed money of $500.

Hope I helped! :)
-Rosey
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