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IgorLugansk [536]
3 years ago
7

Sara borrowed $5,000 from her father at a simple interest rate of 12.5% per year. Over a two - year period, she made equal month

ly payments to pay back the loan plus the interest on the loan. About how much was her monthly payment
Mathematics
2 answers:
Olin [163]3 years ago
8 0

The formula for simple interest is:

A = P(1+rt)

Where P = amount borrowed

r = interest rate

t = time of loan


A = 5000(1 + 0.125*2)

A =6,250

The total amount she paid back was $6,250


For her monthly payment divide total paid back by 24 months ( 2 years = 24 months)


6250 / 24 = 260.42


Her monthly payment was $260.42

kenny6666 [7]3 years ago
3 0

Answer:

260.42    

Step-by-step explanation:

I =PRT

Where p is the principal

r is the interest rate = 12.5 % = .125

t = time  = 2 years

I = 5000* .125*2 =1250

The total cost  is the loan plus the interest

A = 5000+1250

   = 6250

Divide by the 24 months

6250/24 =260.42    

 

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