Answer:
she is paying back 9112.5 R.O
Interest paid back is 2,403.95
Step-by-step explanation:
To find the amount, we use the compound interest formula.
This is given as;
A = I( 1 + r/n)^nt
where A is the amount we are trying to calculate
I is money borrowed = 6709
r is the interest rate = 12 1/3% = 37/3 = 12.33% which is same as 12.33/100 = 0.1233
n is the number of times interest is compounded. We have 15 2 months in 2 and a half years
t is the number of years = 2.5
Plugging these values, we have;
A = 6709(1 + 0.1233/15)^(15)(2.5)
A = 6709(1.0082)^(37.5)
A = 9112.95 R.O
Interest is amount - principal( money borrowed)
9112.95 - 6709 = 2403.95
