49.1k views
4 votes
Matthew borrowed $223 to purchase a bike. He will pay back the money in 6 months with 3% interest per month. How much will Matthew pay for the bike including interest?

a) $223
b) $223 + $13.38
c) $223 + $40.14
d) $223 + $80.28

1 Answer

1 vote

Final answer:

Matthew will pay a total of $40.14 in interest over the 6 months. Adding this to the principal amount of $223, the total he will pay for the bike including interest is $263.14. Thus, the answer is c) $223 + $40.14.

Step-by-step explanation:

The student is asking how much Matthew will pay for a bike including interest if he borrowed $223 and will pay back the money in 6 months with 3% interest per month. To calculate the total interest, we can multiply the principal amount ($223) by the monthly interest rate (3%), and then by the number of months (6).

Total interest paid = Principal × Monthly interest rate × Number of months

Total interest paid = $223 × 0.03 × 6

Total interest paid = $40.14

Now, we add the total interest to the principal amount to get the final amount Matthew will pay for the bike:

Final amount = Principal + Total interest

Final amount = $223 + $40.14

Final amount = $263.14

Therefore, the correct answer is c) $223 + $40.14.

User Ataboy Josef
by
7.5k points