document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1117487>Question 1117487</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Rita wants to buy a new car but needs money for the down payment. Her parents agree to lend her money at an annual rate of <BR>\n" );
document.write( "5%, charged as simple interest. They lend her $7000 for 2years. She makes no payments except the one at the end of that time.<BR>\n" );
document.write( "how much total interest will rita have to pay?<BR>\n" );
document.write( "What will the total repayment amount be(including interest rate? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #732580 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=732580\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Rita wants to buy a new car but needs money for the down payment. Her parents agree to lend her money at an annual rate of 5%, charged as simple interest. <BR>\n" );
document.write( "They lend her $7000 for 2years. She makes no payments except the one at the end of that time.<BR>\n" );
document.write( "How much total interest will rita have to pay?<BR>\n" );
document.write( "I = P*r*t = 7000*0.05*2 = $70.00<BR>\n" );
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document.write( "What will the total repayment amount be(including interest rate?<BR>\n" );
document.write( "A(t) = P(1+rt)<BR>\n" );
document.write( "A(2) = 7000(1+0.05*2) = 7000+ 7000*0.05*2 = $7070.00<BR>\n" );
document.write( "---------------<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( "---------------------  </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );