How do i figure this math problem out?

okay this is the problem



daphne plans to take out a loan of 575 borrowed for 5 months at an interest rate of 12% per year, how much interest will she pay for this loan?

How do i figure this math problem out?
Interest=principal x rate x time



I = p x r x t



I = $575 x .12 x 5/12

I = $28.75
Reply:shiiiiit! i dont know... i tried n it deffinately wasnt right!! haha good luck with that.
Reply:Use the Simple Interest formula:

SI = PRT/100

P=575

I=12%

T= 5/12 years

Simple Interest = 575x12x5/12/100=2875/100

Interest=$28.75

Note, she will have to pay back $575+28.75
Reply:ok the facts are the folowing:

1. The intrest is 12% per year

2. She borrowed $575

3. the loan was for 5 months



next you work out the intrest rate per month

12%/12 = 1% per month

Therefore 5 months is 5% intrest

Next you work out 5% of $575 which is $28.75

The amount of intrest she pays = $28.75
Reply:Here's what I think.



If she is only borrowing the money for 5 months, then any "annual" interest will not apply. Therefore, she shouldn't be paying any interest at all, if she pays it back after 5 months.



If the interest were per month, you would need to know if it were cumulative or not. If so, you would need to know how much she paid back each month.
Reply:575 x 0.12=69 (interest rate)

69/12= 5.75 (1 year = 12 months)

5.75* 5= 28.75 ( loan borrowed for 5 months)



She will pay 28.75 for interest.