Question

Mary loaned David $19,240

at an interest rate of 7%
for 140
days. How much will David pay Mary at the end of 140
days? Round your answer to the nearest cent. Note: Assume 365
days in a year and 30
days in a month.

Answer 1

To calculate the total repayment at the end of 140 days, we need to calculate the interest accrued on the loan. By using the formula for simple interest, we find that David will pay Mary a total of $19,640.36.

Step-by-step explanation:

To calculate the amount David will pay Mary at the end of 140 days, we need to find the interest accrued on the loan.

First, we calculate the interest by using the formula:

Interest = Principal * Rate * Time

Where Principal is $19,240, Rate is 7% (or 0.07), and Time is 140 days divided by 365.

Plugging in the values, we get:

Interest = $19,240 * 0.07 * (140 / 365) = $400.36

Finally, we add the interest amount to the principal to find the total repayment:

Total Repayment = Principal + Interest = $19,240 + $400.36 = $19,640.36