Given:
Amount Nicole borrowed = $1100
Annual interest rate = 7%
Duration = 6 months
Let the amount of interest be x
The amount after t years can be calculated using the formula:
[tex]\text{Amount = }P(1\text{ }+\text{ rt)}[/tex]
The interest that she would pay can be calculated using the formula:
[tex]\text{Interest = Amount - Principal}[/tex]
The amount after 6 months is:
[tex]\begin{gathered} \text{Amount = 1100(1 + 007 }\times\frac{6}{12}) \\ =\text{ 1138.5} \end{gathered}[/tex]
Hence, the interest:
[tex]\begin{gathered} \text{Interest = 1138.5 - 1100} \\ =\text{ 38.5} \end{gathered}[/tex]
Answer: $38.5
