Question

Celeste Nossiter borrowed $6200 from her father to buy a used car. She repaid him after 9 months, at an annual interest rate of 7.1%. Find the total amount she repaid. How much of this amount is interest?

Answer 1

Answer:

330.15

Explanation:

I = Prt

Interest = Principle x rate x time

P= 6200

R= 7.1% = 0.071

T= time in years* 9/12 = 0.75

I= 6200 x 0.071 x 0.75

330.15

therefore for Celeste interest that she repaid is $330.15

Answer 2

Answer:

$6,530.15

Explanation:

Calculation:

First, converting R percent to r a decimal

r = R/100

= 7.1%/100 = 0.071 per year.

Putting time into years for simplicity,

9 months / 12 months/year = 0.75 years.

Solving our equation:

A = 6200(1 + (0.071 × 0.75)) = 6530.15

A = $6,530.15

The total amount accrued, principal plus interest, from simple interest on a principal of $6,200.00 at a rate of 7.1% per year for 0.75 years (9 months) is $6,530.15.