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kifflom [539]
2 years ago
11

Pet owners may have to take out a loan when their animal has a major operation. Buddy needs to have surgery on his leg. The cost

of the surgery is $2500. His owner will get a loan for this amount over 2 years at a rate of 7.5%. What is the total cost of the surgery including the loan and the interest?
Mathematics
1 answer:
Mkey [24]2 years ago
3 0

Answer:

$2,889.06

Step-by-step explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 7.5/100

r = 0.075 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 2,500.00(1 + 0.075/1)(1)(2)

A = 2,500.00(1 + 0.075)(2)

A = $2,889.06

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $2,500.00 at a rate of 7.5% per year compounded 1 times per year over 2 years is $2,889.06.

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