Question

Ted borrowed $5,600 from his bank for 4 months with interest at 9%. ted paid the note in full on its due date. how much was the check he gave to the bank for payment?

Answer 1

Ten gave the check of $5768 to the bank for payment.

What is simple interest?

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, so a borrower will never have to pay interest on the interest already accumulated because a creditor will only pay interest on the principal amount.

Formula for simple interest is;-

Simple interest = (principal amount×rate of interest×time duration in years)/100

S.I = (P×R×T)/100

Calculation of the total amount paid by Ted to the bank-

The principal amount is  $5,600.

The rate of interest is 9%.

Time duration is 4 months equals 4/12 = 1/3 years.

S.I = (5,600×9×1)/(3×100)

S.I  = 168

The simple interest on amount is $168.

Thus, the total amount is S.I + principal amount

Total amount = 168 + 5600

                      = 5768

Therefore, the total amount paid by the Ted to the bank is $5768.

To know more about the simple interest, here

brainly.com/question/25845758

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