Answer: The total amount Jennifer will owe to the bank on January 31st is $3,458.75
Step-by-step explanation: In September, Jennifer Rick went to Park Bank to borrow $2,500 at 11.75% interest for 4 months. As this loan is a simple interest loan calculated monthly, we need to calculate the total amount she will owe to the bank on January 31st.
We use the formula for simple interest which is:
Interest = Principal x Interest rate x Time
Interest = $2,500 x 11.75/100 x 4/12 = $958.75 (rounding to the nearest cent)
Now we can add the interest to the principal amount to get the total amount that Jennifer will owe to the bank on January 31st.
Total amount = Principal + Interest
Total amount = $2,500 + $958.75 = $3,458.75 (rounding to the nearest cent)
So, the total amount Jennifer will owe to the bank on January 31st is $3,458.75