Question

(25 points!) Caleb bought a $795 necklace for his wife's birthday. If he bought it on credit with an interest rate of 16.25% how much total will he have paid after three years? ​

Answer 1

Answer:

The total amount that he would have paid after 3 years is $1183.

Step-by-step explanation:

We would apply the formula for determining simple interest which is expressed as

I = PRT/100

I represents interest paid on the amount owed.

P represents the principal or initial amount owed.

R represents interest rate

T represents the duration for which the amount was owed in years.

P = $795

R = 16.25

T = 3 years

I = (795 × 16.25 × 3) ÷ 100

I = $388

Total amount that he would have paid after 3 years is $795 + $388 = $1183