Question

Yoshua borrowed $8,000 from his credit union over 9 months. He pays a simple interest of

9%. What is the total amount of money he will owe the bank?

Answer 1

`\boxed{\blue{\sf He\ will \ owe \ \$ 8540 .}}`

Explanation:

According to Question , Yoshua borrowed $8,000 from his credit union over 9 months. He pays a simple interest of 9%. And we are required to find the total amount of money he will owe the bank .

So , we know the formula of Simple Interest as ,

`\qquad\boxed{\red{\bf SI =(P* R* T)/(100)}}`

As ,per the data in Question ,

• Amount = $ 8,000
• Time = 9 months
• Rate of Interst = 9% .

`\implies SI = =(P* R* T)/(100) \\\\\implies SI =(\$ 8000 * (9)/(12)* 9 )/(100) \\\\\implies SI = (\$ 8000 * 9 * 9 )/(12* 100 )\\\\\boxed{\pink{\bf \implies Simple\: Interst = \$ 540 }}`

Hence the Simple Interest is $ 540.

And , we know that Amount is ,

`\qquad\boxed{\red{\bf Amount = SI + Principal}}`

`\implies Amount = Principal + SI \\\\ \implies Amount = \$ 8000 + \$ 540 \\\\\boxed{\orange{\bf \implies Amount= \$ 8540 }}`

Hence he will owe $ 85400.