SOLUTION: 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. They lend her $7000 for
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5%, charged as simple interest. They lend her $7000 for
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Question 1117487: 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. They lend her $7000 for 2years. She makes no payments except the one at the end of that time.
how much total interest will rita have to pay?
What will the total repayment amount be(including interest rate? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! 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.
They lend her $7000 for 2years. She makes no payments except the one at the end of that time.
How much total interest will rita have to pay?
I = P*r*t = 7000*0.05*2 = $70.00
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What will the total repayment amount be(including interest rate?
A(t) = P(1+rt)
A(2) = 7000(1+0.05*2) = 7000+ 7000*0.05*2 = $7070.00
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Cheers,
Stan H.
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