Question 1057796: Your electric bill is $127. You are charged 15% simple interest for late payments. How much do you owe if you pay the bill 4 months past the due date?
Part 1 of 2
To find the amount due plus the interest, use the future value formula
A = P(1 + rt)
where A is the amount after interest, P is the principal, r is the interest rate, and t is the time period.
Substitute P = 127 and r = 0.15 into the equation.
A = P(1 + rt)
Answer by solve_for_x(190)   (Show Source):
You can put this solution on YOUR website! The time, t, must be in units of years, so 4 months represents t = 4/12 = 1/3 year.
Substituting P = 127, r = 0.15, and t = 1/3 into the given equation gives:
A = 127 * (1 + 0.15(1/3))
A = 127 * (1 + 0.05)
A = 127 * 1.05
A = 133.35
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