Question

Marsha Waite borrows $7,000 and agrees to pay it back in 2 years if the simple interest rate is 15%

Answer 1

Answer:

Marsha must pay in 2 years $\ 9,100$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A  is the amount of money to pay

P is amount of money borrowed  

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=2\ years\\ P=\ 7,000\\ A=?\\r=15\%=15/100=0.15$

substitute in the formula above

$A=7,000(1+0.15*2)$

$A=7,000(1+0.30)$

$A=7,000(1.30)$

$A=\ 9,100$

therefore

Marsha must pay in 2 years $\ 9,100$