Question

George loaned David $13,610 at an interest rate of 9% for 177 days. How much will David pay George at the end of 177 days? Round your answer to the nearest cent. Note: Assume 365 days in a year and 30 days in a month.

Answer 1

David will pay George a total of approximately $14,209.91 at the end of 177 days for a loan of $13,610 at a 9% annual interest rate, after calculating the simple interest that accumulates over the given period.

Step-by-step explanation:

To determine the total amount David will pay George at the end of 177 days on a loan of $13,610 with an annual interest rate of 9%, we first need to calculate the simple interest accrued on the loan

Simple interest is calculated with the formula I = PRT, where I is the interest, P is the principal amount, R is the annual interest rate (as a decimal), and T is the time in years.

Here's the calculation:

• Principal (P) = $13,610
• Rate (R) = 9% annual rate = 0.09 when expressed as a decimal
• Time (T) = 177 days out of 365 days in a year = 177 / 365 years

We plug these numbers into the formula to find the interest:

I = PRT = $13,610 × 0.09 × (177 / 365) ≈ $599.91

The total amount David will repay is the sum of the principal and the interest:

Total Repayment = Principal + Interest = $13,610 + $599.91 ≈ $14,209.91