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?

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Question 1162305: 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?
Answer by ikleyn(52881) About Me  (Show Source):
You can put this solution on YOUR website!
.

The interest to pay is  6500*0.065*8%2F12 = 281.67 dollars.


Here  8%2F12  represent  8 months.

Solved.