i need help with this math problem.

Question

You pawn your guitar at silas deane pawn so you have more money for holiday shopping. When you pawn an item, you use that item as collateral for a simple interest loan. When you pay back the loan with interest, you get your item back. Silas Deane Pawn lent you $450 at 21% simple interest per year. Five months later, how much money you will need to give silas Deane pawn in order to get your guitar back? Round to the nearest cent.

Answer 1

21% of 450 = $94.50 for an entire year Since you are only borrowing the money for 5 months you would only pay 5/12 of this = $ 39.375 rounded to nearest cent = $39.38