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

General Idea:

The formula to find the Amount 'A' that need to be paid after ' t ' years for a Principal ' P ' with a annual rate of interest ' r ' is given below:

$A= P(1+r \cdot t)$

Applying the concept:

Annie's cafe borrows $6100 at 6% for 290 days.

From the above statement we can conclude,...

$P= \ 6100\\ \\ r=6\%\\ \\ t=\frac{260}{365}$

Substituting the values of P, r and t in the formula, we get...

$A=6100 \cdot (1+6 \% \cdot \frac{260}{365} )\\ \\ A=6100(1+\frac{6}{100} \cdot \frac{260}{365} )=6100(1+\frac{1560}{36500} ) \approx 6361$

Conclusion:

The total amount that must be repaid after 290 days is approximately $\ 6361$

Answer 2

If its 6% interest, then the answer would be $6,466. You would do this by multiplying 0.06 to 6100 and adding the product (366) to 6100.