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Basil wants to buy a new motor scooter that costs $6500. He borrows the money at a simple interest rate of 15.8% p.a. Calculate his weekly repayment over a period of 2 years. Give your answer to the nearest $.​

User Joshua
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To calculate Basil's weekly repayment for a $6500 loan at a simple interest rate of 15.8% per annum over a period of 2 years, you can follow these steps:

Calculate the total interest to be paid over the 2-year period:

Total Interest = Principal (P) x Rate (R) x Time (T)

Total Interest = $6500 x 0.158 x 2

Total Interest = $2060

Calculate the total amount to be repaid, including the principal and interest:

Total Amount = Principal + Total Interest

Total Amount = $6500 + $2060

Total Amount = $8560

Calculate the total number of weeks in 2 years:

2 years x 52 weeks/year = 104 weeks

Divide the total amount by the number of weeks to find the weekly repayment:

Weekly Repayment = Total Amount / Total Number of Weeks

Weekly Repayment = $8560 / 104 weeks

Weekly Repayment ≈ $82.31

Rounding to the nearest dollar, Basil's weekly repayment would be approximately $82.

User Alican
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