Question 572933: Could someone please help with this problem?
"Sarah borrowed $3650 for 4 years at an annual rate of 16%, simple interest. How much money must she repay in all? How much is her monthly payment?
Answer by mathsmiles(68)   (Show Source):
You can put this solution on YOUR website! Sarah borrowed $3650 for 4 years at an annual rate of 16%
So the first year, she borrowed $3650 and owed 16% on this at the end of the year.
3650*.16 = 584 is the interest Sarah owed after the first year.
After the 2nd year, she owed another 584.
After the 3rd year, she owed another 584.
After the 4th year, she owed another 584.
At the end of the 4 years, she owes
3650 + (584 X 4) =
3650 + 2336 = 5986
Using simple interest formulas, this is what she owes after 4 years.
Sorry, but you don't have enough information to know what her monthly payment will be. You'd need the term of the loan to do that. The term is how many years she has to pay back the loan.
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