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19 May, 21:36

A man received 7 per cent interest on a loan of $800 for one year. How much interest did he receive? A.) $56 B.) $560 C.) $780 D.) $870 D.) None of these

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  1. 19 May, 22:27
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    A.) $56

    Step-by-step explanation:

    1. Convert 7% into the numerical version by either

    A. Moving the decimal two spaces to the right, giving us. 07

    or

    B. Making 7% into a fraction, 7/100

    2. Now make an equation with the total amount of money (M) multiplied by the interest (P) inside of parenthesis. This will give us 7% of $800 in your case.

    (800 *.07) → 56

    3. Then, multiply by the number of years the interest has been accumulated.

    56 * 1

    The official equation for this is: a = p (1 + r) ^t

    a = amount at end (initial amount + interest gained)

    p = initial amount

    r = rate (percent interest)

    t = time in years
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