SOLUTION: If an annual rate of 7.5% in simple interest is charged on a loan of $290 and no payments are made for 9 months, to the nearest whole cent how much is owed?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: If an annual rate of 7.5% in simple interest is charged on a loan of $290 and no payments are made for 9 months, to the nearest whole cent how much is owed?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 4700: If an annual rate of 7.5% in simple interest is charged on a loan of $290 and no payments are made for 9 months, to the nearest whole cent how much is owed?
Answer by XOXO(1) About Me  (Show Source):
You can put this solution on YOUR website!
The answer is $306.31 the amount owned, this is principal + interest.
$290.00 + $16.31= $306.31
formula in simple interest:
I= P*R/t
Where:

I= Simple interest P= Principal R= annual rate t= time



So if we have
I= $290*7.5%/12 = 21.75/12 = 1.81*9= $16.31


So, Total amount owned is A= P+I , A= $290+$16.31, A=$306.31
Where: A= Total amount, P= Principal, I= interest