Question 1183466

Hello

Interest=principal x rate x time

Is the time for this question 11 or  11 / 12?
 
Ricardo borrowed $1300 from his brother. He plans to pay him back in 11 months. If he pays 3.5% interest on the loan, what is the approximate amount he will pay back in 11 months,

Thanks in advance
<pre>The answer to your question is "Yes, the time (in fractional-form) is INDEED {{{11/12}}}.
You can use the formula:  {{{matrix(1,4, Simple, Interest, "=", matrix(1,5, Principal, "*", Time, "*", Rate))}}}, but to get straight to the answer,
use the following formula, with A being the Future Value or Accumulated amount after 11 months

{{{matrix(1,7, A, "=", "P(1", "+", Time, "*", "Rate)")}}} 

{{{matrix(2,10, A, "=", "1,300", "*", "(1", "+", 11/12, "*", 3.5/100, ")",
A, "=", "1,300", "*", "(1", "+", 11/12, "*", .7/20, ")")}}}
{{{matrix(1,8, A, "=", "1,300", "*", "(1", "+", 7.7/240, ")"
)}}}

Future Value/Accumulated amount after 11 months, or {{{highlight_green(matrix(1,9, A, "=", 
"$1,341.7083,", "or", "$1,341.71", "(to", 2, decimal, "places)")))}}}</pre>