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netineya [11]
2 years ago
6

A company offering short term loans agrees to lend Nick $1,200. The amount (plus interest) is repayable in one year, and the int

erest rate is 12% per month. What is the total amount that must be repaid?
Mathematics
1 answer:
KonstantinChe [14]2 years ago
3 0

Answer:

$2,928 in 1 year

Step-by-step explanation:

Amount lent = $1,200

Monthly interest rate = 12%

Period = 12 months

Interest accrued = Amount lent * Monthly interest rate * Period

Interest accrued = $1,200 * 12% * 12

Interest accrued = $1,200 * 1.44

Interest accrued = $1,728

Amount repaid = Amount lent + Interest accrued

Amount repaid = $1,200 + $1,728

Amount repaid = $2,928

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