Question

On March​ 1, 2018, Mandy Services issued a​ 3% long-term notes payable for​ $15,000. It is payable over a​ 3-year term in​ $5,000 principal installments on March 1 of each​ year, beginning March​ 1, 2019. Each yearly installment will include both principal repayment of​ $5,000 and interest payment for the preceding​ one-year period. What is the amount of total cash payment that Mandy will make on March​ 1, 2019?

Answer 1

Mandy will make total cash payment of $\fbox{\begin{minispace}\\\ \text{ }5450\end{minispace}}$ on March 1, 2019.

Further explanation:

Mandy issued a 3% long-term notes payable for $\ \text{ }15000$ over a 3-year term in $\ \text{ }5000$ principal installments on March 1 each year.

Then the interest payment for the first year will apply on total amount of $\ \text{ }15000$.

The formula for simple interest at principal value $P$ and rate percentage of $R$ in the time of $T$ years is,

$\fbox{\begin{minispace}\\ \math{I}=\dfrac{P\times R\times T}{100}\\\end{minispace}}$

So, the interest amount payable at the end of one year is calculated as,

$I=\dfrac{15000\times 3\times 1}{100}\\I=150\times 3\\I=450$

The total cash payment to be done by Mandy after a year on March 1, 2019, is the sum of the principal installment of $\ \text{ }5000$ and the interest applied on the total amount.

Hence the total cash payment is obtained as,

$\fbox{\begin{minispace}\\\text{Total cash payment}=5000+450=5450\end{minispace}}$

Therefore, Mandy has to make a total payment of $\fbox{\begin{minispace}\\\ \text{ }5450\end{minispace}}$ on March 1, 2019.

Learn more:  

1. Linear equation brainly.com/question/1682776

2. Domain of the function brainly.com/question/3852778

3. Equation of circle brainly.com/question/1506955

Answer details  

Grade: High school  

Subject: Mathematics  

Chapter: Simple Interest

Keywords: installments, one year, Mandy, principal, long-term, payable, March 1, amount, total cash, total cash payments, each year, payments, simple interest, rate percentage, sum, total amount, time, interest applied.

Answer 2

Answer:

amount of total cash payment is $5450

Step-by-step explanation:

Given data

amount = $15000

principal = $5000

rate = 3% = 0.03

to find out

the amount of total cash payment

solution

we know according to question is Each yearly installment will include both principal repayment of​ $5,000 and interest payment for the preceding​ one-year period

so first we calculate interest i.e.

interest = rate × amount

interest = 0.03 × 15000

interest = 450

so interest is $450 for 1 year

now we calculate the amount of total cash payment i.e.

interest + principal

so the amount of total cash payment = 450 +5000 = 5450

amount of total cash payment is $5450