Question

Lucy borrowed $425 from Colleen. Colleen charges Lucy 5.3% interest if Lucy pays Colleen back in 3 years how much does she pay Colleen back altogether

Answer 1

Answer: Lucy pays $ 492.58 back altogether.

Explanation:

Formula : Interest = Principal x Rate x Time

Given: Principal = $425 , rate = 5.3% = 0.053 , time = 3 years

Interest = 425 x 0.053 x 3 ≈ $ 67.58

Total amount need to pay back = Principal + Interest

= $ (425+67.58)

= $ 492.58

Hence, Lucy pays $ 492.58 back altogether.