Question

Marsha Waite borrows $7,000 and agrees to pay it back in 2 years if the simple interest rate is 15%

Answer 1

Marsha must pay in 2 years
`\$9,100`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the amount of money to pay

P is amount of money borrowed

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=2\ years\\ P=\$7,000\\ A=?\\r=15\%=15/100=0.15`

substitute in the formula above

`A=7,000(1+0.15*2)`

`A=7,000(1+0.30)`

`A=7,000(1.30)`

`A=\$9,100`

therefore

Marsha must pay in 2 years
`\$9,100`