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What amount will you repay if you borrowed $1,911 for 221 days at a rate of 30 cents a day for each $500 borrowed?

a. $2,401.12
b. $1,567.30
c. $2,134.90
d. $1,911.30

User Klode
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1 Answer

5 votes

Final answer:

After calculating the daily interest rate for the entire loan and multiplying by the number of days, the total interest is $253.50. Adding this to the original loan amount of $1,911 gives a total repayment amount of $2,164.50. However, this does not match any of the given options, indicating there may be an error with the provided question details or options.

Step-by-step explanation:

To calculate the total amount repaid on the loan, we need to determine the daily interest charged and then multiply this by the number of days for which the money was borrowed. The daily interest rate per $500 is $0.30. First, let's calculate how many times $500 fits into the borrowed amount of $1,911:

$1,911 ÷ $500 = 3.822

This means that the daily interest for the entire loan is 3.822 times the daily rate for $500:

Daily interest = 3.822 × $0.30 = $1.1466

Now, we calculate the total interest by multiplying the daily interest by the number of days the loan was held:

Total interest = $1.1466 × 221 days = $253.50

To get the total repayment amount, we add the total interest to the original loan amount:

Total repayment = $1,911 + $253.50 = $2,164.50

Looking at the options provided, none of them match the calculated total repayment of $2,164.50. Hence, there might be an error either in the given options or in the provided data. Please verify the details and available options for the question.

User CaseyWebb
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