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enyata [817]
2 years ago
9

What is the total amount due after 6 months on an initial loan of $1,400 at 12.5% annual interest.

Mathematics
2 answers:
DochEvi [55]2 years ago
5 0

Answer:  $1487.50

Step-by-step explanation:

hey there again!

Facts:

Principal (starting amount): $1,400

Annual interest rate: 12.5% <em>of the principal. </em>Whenever you get an annual interest rate as a percentage, its always that percentage of the starting amount.

Time given: 6 months, 1/2 a year

the question asks "total amount due' in 6 months. Basically, we want to know how much they will have in their account after 6 months.

Step 1: Find how much interest he will get in 6 months <u>as a percentage.</u>

6 months is 1/2 of a year, so find 1/2 of 12.5

1/2 of 12.5

1/2 x 12.5

0.5 x 12.5

6.25%

Step 2: Find how much interest he gets, but as a number.

Principal: $1400

6.25% of 1400= $87.50

Step 3: Find the total amount of money he will have after 6 months.

he starts with 1400, and gets an additional $87.50 added to his account after 6 months. How much does he have now?

To answer this, add to find the total:

87.50+1400= $1487.50

viktelen [127]2 years ago
4 0
The answer is 1487.50 :)
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