Answer:
(A) $157.25
(B) $3,857.25
Step-by-step explanation:
The given values are:
Principle (P)
= $3700
Time (T)
= 6 months i.e., 1/2 years
Rate (R)
= 8.5%
(A)
As we know,
Simple Interest,
⇒
On putting the values, we get
⇒
⇒
⇒ ($) (he paid for the use of money)
(B)
Amount he paid to the bank will be:
⇒
⇒
⇒ ($)