Question

A family charges a trip to the zoo on a credit card. The simple interest rate is 12%. The charges are paid after 3 months. What is the total amount paid for the trip? Round your answer to the nearest hundredth.
Tickets 67.70
Food 62.34
Gas 45.50

Answer 1

The formula for simple interest is: $A = P(1 + rt)$
$R=12$
We are going to convert the percent (12) into a decimal.
$r = R/100 = 12/100 = 0.12$
Then, we are going to put the months into years.
$3 / 12 = 0.25$
Let's plug in the values:
$A = 175.54(1 + (0.12 * 0.25)) = 180.8062$
$A = 180.81$
The total amount paid for the trip is $180.81

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