jennifer borrows 20,900 from her bank to open a flower shop. she agrees to repay in 18 months with simple annual interest of 10.4%.

A) how much must she pay the bank in 18mos

B) how much of the amount in part (a) is interest

jennifer borrows 20,900 from her bank to open a flower shop. she agrees to repay in 18 months with simple annual interest of 10.4%.

A) how much must she pay the bank in 18mos

B) how much of the amount in part (a) is interest

Tutors, please sign in to answer this question.

You are given the following:

Principal = money borrowed = $20,900

Time = period of time to repay = 18 months = 1.5 years

Rate = rate of interest charged = 10.4%

The amount that she must pay the bank in 1.5 years (18 months) is given by the following formula:

Amount = Principal + Simple Interest

Therefore, we first have to calculate the simple interest, which is given by the following formula:

Interest = Principal • Time • (Rate/100)

= 20,900 • 1.5 • (10.4/100)

= 20,900 • 1.5 • 0.104

= 3,260.4

Amount = Principal + Interest

= 20,900 + 3,260.4

= 24,160.4

Thus, the amount paid back to the bank in 1.5 years is $24,160.40 (A) and $3,260.40 of this amount is interest (B).

Romina A.

Knowledgeable tutor in Spanish, Biology, Anatomy & Physiology and Math

Harrison, NJ

5.0
(76 ratings)

Nikunj P.

Math and Science Specialist, Over 14 Years of Educational Experience

Scarsdale, NY

4.9
(88 ratings)

Avital S.

Patient tutor, for all ages, helps when your learning is blocked

Westwood, NJ

5.0
(481 ratings)