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OpenStudy (anonymous):
Joe borrowed $900 from Sam for six months. How much will Sam earn if he charges Joe a simple interest rate of 4 percent?
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OpenStudy (texaschic101):
I = PRT (Interest = principle * rate * time) I = 900 * .04 * 0.5 (I used 0.5 instead of 6/12) I = 18 After Joe pays Sam back the $900 bucks he owes him, Sam will have earned $18
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