Question

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?

Answer 1

2,875; 2500 x .15 (15%) = 375; 2,500 + 375 = 2,875 Total

Answer 2

Answer: $2875

Explanation:

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

`S.I.=P* r* t`, 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`