Question

Annie's cafe borrows $6100 at 6% for 290 days. Find the total amount that must be repaid after 290 days. (Use a 365 day year.)

Answer 1

Given:
amount borrowed $6,100
interest rate 6% - assuming annual interest rate
term - 290 days of a 365 day year.

This is a simple interest computation.

Interest = Principal * interest rate * term
Interest = 6,100 * 6% * 290/365
Interest = 290.79

Total payment at the end of the 290 term would be $6,390.79. 

Principal + interest → 6,100 + 290.79 = 6,390.79