Question

Instead of the installment plan, suppose the Miller family went to the bankand borrowed $378 with 6% interest.8. What is the amount of interest the Miller family would pay the bank?9. What is the total amount that the Miller family will pay back to the bank?

Answer 1

8. $22.68

9. $400.68

Step-by-step explanation

The Miller family went to the bank and borrowed $378 with 6% interest.

8. To find the amount of interest that the family will pay to the bank, we have to find 6% of the amount they borrowed ($378).

That is:

`\begin{gathered} (6)/(100)\cdot\text{ 378 = Interest} \\ \text{Interst = \$}22.68 \end{gathered}`

They will pay an interest of $22.68.

9, To find out the total amount they will pay, we add the interest to the amount borrowed.

That is:

Amount = 378 + 22.68

Amount = $400.68

They will pay a total amount of $400.68.