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​

Accepted Solution

Answer:A.) $56Step-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) → 563.  Then, multiply by the number of years the interest has been accumulated.                                               56 × 1The official equation for this is: a = p(1 + r)^ta = amount at end (initial amount + interest gained)p = initial amountr = rate (percent interest)t = time in years