Darrel loaned his friend $2500 to help him with his business. If his friend pays Darrel back in 1 year with 15% simple interest, how much will he owe Darrel altogether?

Question

asked May 22, 2019 232k views

2 Answers

MichAdel · Answer 1 · 2019-05-26T17:57:42+0000

Answer: $2875

Explanation:

The formula to calculate the simple interest is given by :-

, where P is the principal amount , r is the rate of interest and t is the time period.

Given: Principal amount = $2500

Rate of interest = 15%=0.15

Time period = 1 year

Now, the simple interest gained by Darrel after 1 year will be :-

$S.I.=2500* 0.15* 1=\$375$

Now, the total amount his friend owed altogether=
$P+I=2500+375=\$2875$