Final answer:
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.