Answer:
$581
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.
[tex]I = Prt[/tex]
P = principal amount
r = interest rate (decimal form)
t = time
The first step is to convert 7% into a decimal:
7% -> [tex]\frac{7}{100}[/tex] -> 0.07
Now, plug in the values:
[tex]I=8,300(0.07)(1)[/tex]
[tex]I=581[/tex]
Molly would have to pay back $581 in interest.
