Question

the local pet store bought 6 new aviary environment at a cost of 520.the owner borrowed 70% of the cost of the cages at an interwst rate of 7 1/2%. find the total at the end of 2 5/12 years using simple interest

Answer 1

The formula to find the total amount is

A=p (1+rt)

A total amount. ?

The interest should be bear on the borrowed amount which is 70% of total cost 364 (520×0.7)

P amount borrowed 364

R interest rate 0.075

T time 2+(5÷12)=2.42 years

A=364×(1+0.075×2.42)

A=430.066....answer

Hope it helps!

Answer 2

614.25

Explanation:

The amount of interest is computed using ...

... I = Prt . . . . . where P is the principal amount, r is the annual interest rate, and t is the number of years.

Here, the interest is ...

... I = 520×0.075×(2 5/12) = 39×29/12 = 94.25

The total amount due, interest plus principal, is ...

... 94.25 + 520 = 614.25