Problema Solution

Marty borrowed $450 at 9% interest for 3 months. Find the total amount due at the end of the 3 months

Answer provided by our tutors

let


P = $450 the principal


r = 0.09 or 9% annual interest rate


t = 3 months = 3/12 = 1/4 = 0.25 years


A = the future value


A = P(1 + rt)


A = 450(1 + 0.09*0.25)


A = $460.125


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the total amount due at the end of the 3 months is $460.125.