SOLUTION: Sarah loans Kim $500 and charges her 2% simple annual interest. Kim promises to repay Sarah in 1.17 years (14 months). About how much will Kim have to pay Sarah? Round your answe

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Sarah loans Kim $500 and charges her 2% simple annual interest. Kim promises to repay Sarah in 1.17 years (14 months). About how much will Kim have to pay Sarah? Round your answe      Log On

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Question 1177576: Sarah loans Kim $500 and charges her 2% simple annual interest. Kim
promises to repay Sarah in 1.17 years (14 months). About how much will
Kim have to pay Sarah? Round your answer to the nearest cent.
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!

Principal P= 500
Simple interest = =2% =0.02
time in years = 7/6 years
Interest = 500 * 0.02*7/6 11.67
He has to return $511.67