Question 1090356
7 x 400 = 2800
2800 x 0.60 = 1680 this is how much they borrowed
1680 x ?
You say they borrowed for 11 months at 8 1/2% interest. Interest is usually annual, per annum. Is it 8.5% for 11 months of 8.5%/year? If per year:
------------------------------
1680 x (0.085/12) x 11 = 1680 x 0.0071 x 11 = 131.21 this is how much interest they have to pay
1680 + 131.21 = 1811.21 is the total