Question

Marian borrowed money to buy a sound system that cost $450. She is charged 5% simple interest for one year. What is the total amount that she pays for the Soundsystem if she pays full amount one year?

Answer 1

Answer:

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount of money borrowed.

P represents the principal or amount of money borrowed.

R represents interest rate

T represents the duration in years.

From the given information,

P = $450

R = 5%

T = 1 year

I = (450 × 5 × 1)/100

I = $22.5

the total amount that she pays for the Soundsystem is

450 + 22.5 = $472.5