2. Dr. Enriquez borrowed $6,370 from the National Bank of Belize at 7.25 per cent per annum simple interest for 6 months. Calculate:
a) The simple interest Dr. Enriquez paid the bank for the money she borrowed.
The formula to calculate simple interest is:
Interest = Principal * Rate * Time
In this case, the principal (amount borrowed) is $6,370, the rate is 7.25% (or 0.0725), and the time is 6 months.
So, the interest paid by Dr. Enriquez can be calculated as:
Interest = $6,370 * 0.0725 * (6/12) = $230.49
Therefore, the simple interest Dr. Enriquez paid the bank for the money she borrowed is $230.49.
To calculate the simple interest, we can use the formula:
Simple Interest = Principal * Rate * Time
where:
Principal = $6,370 (the amount borrowed)
Rate = 7.25% per annum (in decimal form it is 0.0725)
Time = 6 months
Plugging in the values into the formula:
Simple Interest = $6,370 * 0.0725 * 0.5 (since the time is given in months, we divide by 12 to convert it to years)
Calculating:
Simple Interest = $6,370 * 0.0725 * 0.5
= $231.7875
The simple interest Dr. Enriquez paid the bank for the money she borrowed is $231.79 rounded to the nearest cent.