Suppose you obtain a $1,300 T-note with a 9% annual rate, paid monthly, with maturity in 6 years. How much interest will be paid to you each month?
Accepted Solution
A:
We know that, Interest, I = [tex] \frac{P×R×T}{100} [/tex] Where, P = Principal = $1300 R = rate of interest = 9% annually = [tex] \frac{9}{12} [/tex]% T = Time = 1 month
So, I = [tex] \frac{1300×[tex] \frac{9}{12} [/tex]×1}{100} [/tex] = $9.75