Ricardo borrows $1,850 for 10 months at an interest rate of 12.25%. What amount will

Mathematics

1 answer:

jonny [76]3 years ago

7 0

9514 1404 393

Answer:

$2038.85

Step-by-step explanation:

The value of the loan at that point is given by ...

A = P(1 +rt) . . . . . Principal P, rate r, time t (years)

A = $1850(1 + 0.1225·(10/12)) = $2038.85

Ricardo will have paid back $2038.85 at the end of the loan period.

_____

Additional comment

We assume that the loan accrues simple interest and that the amount due is the sum of principal and interest at the end of the loan period.

The question is not specific as to whether interest compounds, or whether intermediate (monthly) payments are made. There are many possible ways the loan could be repaid, generally involving different amounts for the different terms.

You might be interested in

Explain how to find the pre-tax cost of an item if you know the final cost and the sales tax rate.

JulijaS [17]

Answer:

Calculating total cost.Multiply the cost of the item or service by the sales tax in order to find out the total cost.The equation looks like this:Item or service cost x sales tax (in decimal form) = total sales tax.Add the total sales tax to the item or service cost to get your total cost.