SOLUTION: Find the total amount that must be repaid on the following note described.
$8,593 borrowed at 14.5% simple interest
What is the total amount to be repaid 3 years, 125 days later?
Algebra ->
Finance
-> SOLUTION: Find the total amount that must be repaid on the following note described.
$8,593 borrowed at 14.5% simple interest
What is the total amount to be repaid 3 years, 125 days later?
Log On
Question 1197139: Find the total amount that must be repaid on the following note described.
$8,593 borrowed at 14.5% simple interest
What is the total amount to be repaid 3 years, 125 days later? (Round answer to the nearest cent.) Found 2 solutions by Theo, MathTherapy:Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! simple interest formula is:
i = p * r * n
i is the interest
p is the principal
r is the interest rate per time period.
n is the number of time periods.
the principal = 8593.
the interest rate = 14.5% per year = .145
the number of time periods is 3 years and 125 days.
normally a 365 day year is assumed.
125 days is therefore 125 / 365 years.
the number of time periods is therefore 3 + (125/365) years.
the formula becomes:
i = 8593 * .145 * (3 + 125/365) = 4164.662192
add that to the principal to get 8593 + 4164.66 = 12757.66 is owed at the end of the loan period.
You can put this solution on YOUR website! Find the total amount that must be repaid on the following note described.
$8,593 borrowed at 14.5% simple interest
What is the total amount to be repaid 3 years, 125 days later? (Round answer to the nearest cent.)
