To calculate the total amount to be repaid, you can use the formula for simple interest:
Simple Interest = Principal (P) x Rate (R) x Time (T)
In this case:
- Principal (P) = $1912
- Rate (R) = 25% or 0.25 (as a decimal)
- Time (T) = 57 days / 360 days/year (since 1 year = 360 days)
First, convert the time from days to years:
T = 57 days / 360 days/year = 0.15833 years (approximately)
Now, plug these values into the formula:
Simple Interest = 1912 x 0.25 x 0.15833 = $76.18
So, the simple interest amount is $76.18. To find the total amount to be repaid, you add this interest to the principal:
Total Amount = Principal + Simple Interest = $1912 + $76.18 = $1988.18
The total amount to be repaid 57 days later is $1988.18.