Answer:
[tex]\$17.50[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]I=P(rt)[/tex]
where
I is the Final Interest to pay
P is the amount of money borrowed
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=\frac{14}{12}\ years\\ P=\$500\\r=3\%=3/100=0.03[/tex]
substitute in the formula above
[tex]I=500(0.03)(\frac{14}{12})[/tex]
[tex]I=\$17.50[/tex]
