Question
A company has a 6-month loan for $1,000 at 10% interest. Determine the amount of interest the company will pay in the 6-month period using this equation: (number of months divided by 12) multiplied by (interest percentage multiplied by loan amount). Select one.
Answers
GPT-4o mini
To calculate the amount of interest the company will pay on the loan, we can use the formula you provided:
\[
\text{Interest} = \left( \frac{\text{number of months}}{12} \right) \times \left( \text{interest percentage} \times \text{loan amount} \right)
\]
Given:
- Number of months = 6
- Interest percentage = 10% (or 0.10 when expressed as a decimal)
- Loan amount = $1,000
Plugging in the values:
\[
\text{Interest} = \left( \frac{6}{12} \right) \times \left( 0.10 \times 1000 \right)
\]
First, calculate \( \frac{6}{12} \):
\[
\frac{6}{12} = 0.5
\]
Next, calculate \( 0.10 \times 1000 \):
\[
0.10 \times 1000 = 100
\]
Now, substitute these values back into the equation:
\[
\text{Interest} = 0.5 \times 100 = 50
\]
Thus, the company will pay **$50** in interest over the 6-month period.
\[
\text{Interest} = \left( \frac{\text{number of months}}{12} \right) \times \left( \text{interest percentage} \times \text{loan amount} \right)
\]
Given:
- Number of months = 6
- Interest percentage = 10% (or 0.10 when expressed as a decimal)
- Loan amount = $1,000
Plugging in the values:
\[
\text{Interest} = \left( \frac{6}{12} \right) \times \left( 0.10 \times 1000 \right)
\]
First, calculate \( \frac{6}{12} \):
\[
\frac{6}{12} = 0.5
\]
Next, calculate \( 0.10 \times 1000 \):
\[
0.10 \times 1000 = 100
\]
Now, substitute these values back into the equation:
\[
\text{Interest} = 0.5 \times 100 = 50
\]
Thus, the company will pay **$50** in interest over the 6-month period.