Question

Vince borrows $900 to buy a couch. He will pay off the loan by paying 1.5% simple interest for 2 years. Vince incorrectly calculates the amount he will pay back using the expression below.

Answer 1

1. $927

2. The ERROR in his expression is that he used 1.015 instead of using 0.015 (1.5%).

Explanation:

1. Calculation for What is the correct amount Vince will pay back altogether

Using this formula

A = P + PRT

Where,

A represent Amount=?

P represent Principal =$900

R represent Rate of interest= 1.5%

T represent Time=2 years

Let plug in the formula

A = $900 + $900(0.015*2)

A = $900 + $900(0.03)

A = $900 + $27

A = $927

2. Explanation of the error in in Vince’s expression.

Based on the information given the expression he used which is 900 + 900(1.015 • 2) was correct but the ERROR in his EXPRESSION is that he incorrectly used 1.015 instead of using 0.015 (1.5%).

Therefore the correct amount Vince will pay back altogether will be $927 while the ERROR in his expression used 1.015 instead of using 0.015 (1.5%).