Question

You borrow $200 from a relative for six months. You agree to pay compound interest at
the rate of 1% per month. How much interest will you pay your relative when you return the
money at the end of the six months?
a.
$201.00
c.
$12.30
b.
$11.66
d.
$210.00

Answer 1

Use:
\[P=A(1+\frac{ r }{ n })^{t*n}\]

Answer 2

http://qrc.depaul.edu/StudyGuide2009/Notes/Savings%20Accounts/Compound%20Interest.htm