Problema Solution
Sophia borrowed $12,109 at 4.5% simple interest for 6 months. How much will the interest amount to? What is the total amount that she will have to pay back at the end of 6 months? Round answers to the nearest cent if necessary.
Answer provided by our tutors
P = $12,109 is the principal
r = 0.045 or 4.5% is the annual interest rate
t = 6 months = 1/2 year the time
the simple interest is
I = P*r*t
I = 12109*0.045*1/2
I = $272.4525 = $272.45 to the nearest cent
the total amount that she will have to pay back at the of 6 months is
P + I = 12,109 + 27,247.25 = $12,381.4525 = $12,381.45 to the nearest cent.