Question

Carmela borrows $400 and will pay 5.25% yearly simple interest. How much

Answer 1

Answer:

Camels has to pay $42 more as interest

Step-by-step explanation:

We are given that Carmela borrows $400 and will pay 5.25% yearly simple interest.

Principal = $400

Rate of interest = 5.25%

Time = 2 years

Formula :$SI = \frac{P \times T \times R}{100}$

So, $SI =\frac{400 \times 2 \times 5.25}{100}$

SI=42

She borrows the money for 4 years instead of 2 years,

So,$SI =\frac{400 \times 4 \times 5.25}{100}$

SI=84

Difference in interests = 84-42 = 42

Hence Camels has to pay $42 more as interest