Question

2.38.2465

Answer 1

Using simple interest, it is found that Mikos has to pay it back on September 13 of the same year.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of money after t years in is modeled by:

$A(t) = A(0)(1 + rt)$

In which:

• A(0) is the initial amount.

• r is the interest rate, as a decimal.

In this problem:

• The initial amount is of A(0) = 100000.

• The interest rate is of r = 0.105.

• The maturity value is of A(t) = 104375.

Hence, we have to solve for t, then:

$A(t) = A(0)(1 + rt)$

$104375 = 100000(1 + 0.105t)$

$1 + 0.105t = \frac{104375}{100000}$

$1 + 0.105t = 1.04375$

$0.105t = 0.04375$

$t = \frac{0.04375}{0.105}$

$t = 0.4166$

This is the time in years, hence in days:

0.4166 x 365 = 152 days after April 14, thus on September 13.

To learn more about simple interest, you can take a look at brainly.com/question/25296782