The total amount to be repaid is equal to $949.66
Step-by-step explanation:
Simple interest is a type of interest that is usually applied on short term loans, where when a payment is made towards this kind of interest the payment first goes towards monthly interest, and then the remainder is reverted towards the principal.
FORMULA FOR CALCULATING SIMPLE INTEREST =
Here principal = $922
interest rate = 6%
time period = 6 months (when made per annum it will be 6/12)
SIMPLE INTEREST IS EQUAL TO $27.66
The total amount that is to be repaid is equal to
PRINCIPAL + SIMPLE INTEREST
= $922 + $27.66
= $949.66
