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kotegsom [21]
3 years ago
5

Caleb borrowed $1500 from his aunt. He plans to pay his aunt back in 9 months. If he

Mathematics
1 answer:
sergeinik [125]3 years ago
4 0

Answer:

A = $1,545.00

(I = A - P = $45.00)

Equation:

A = P(1 + rt)

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year.

Putting time into years for simplicity,

9 months / 12 months/year = 0.75 years.

Solving our equation:

A = 1500(1 + (0.04 × 0.75)) = 1545

A = $1,545.00

The total amount accrued, principal plus interest, from simple interest on a principal of $1,500.00 at a rate of 4% per year for 0.75 years (9 months) is $1,545.00.

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