Question

Hannah has agreed to loan Taylor $85,529.68 and Taylor has agreed to pay $7,261.13 in simple interest. How much in total will Taylor have to give Hannah when she repays the loan?

Answer 1

Taylor will repay a total of $92,790.81 to Hannah, which includes the original loan amount of $85,529.68 plus $7,261.13 in simple interest.

Step-by-step explanation:

Hannah has loaned Taylor $85,529.68, and Taylor has agreed to pay simple interest of $7,261.13. To calculate the total repayment, you need to add the original loan amount to the simple interest. The formula for the future value with simple interest is Principal + Interest.

So Taylor will have to repay:

• Principal (loan amount): $85,529.68
• Simple Interest: $7,261.13

Adding these two amounts together gives us the total repayment amount.

Total Repayment = Principal + Interest
= $85,529.68 + $7,261.13
= $92,790.81

In conclusion, Taylor will have to give Hannah a total of $92,790.81 to fulfill the terms of the loan.