A. Margo borrows $1100, agreeing to pay it back with 7% annual interest after 6 months. How much interest will she pay? Round your answer to the nearest cent, if necessary.

2. Dilbert invests $6,000 into an account at an annual rate of 0.5% simple interest for 12 months.

1) What is the Principal in this scenario?

• $6,000
• 0.005
• 1
• 0.5 %

B) What is the interest rate for this account?

• 0.5 %
• 0.005
• $6,000
• 1

3) What number do you use to represent the interest rate in the simple interest formula?

• 0.005
• $6,000
• 0.5 %
• 1

4) What is the length of time of this investment, in years?

• 0.005
• 1
• $6,000
• 0.5 %

5) Calculate the simple interest earned on this account.

C) You deposit $4000 in an account earning 2% interest compounded monthly. How much will you have in the account in 15 years?