Final answer:
The total interest on a $2065 loan at 5.5% per annum for 42 months (3.5 years) is $397.23875. Adding this to the principal, the total amount due is $2462.23875.
Step-by-step explanation:
The calculation of simple interest and the total future amount for a loan can be done using simple interest formulas. In the case of the student's question where $2065 is borrowed at a rate of 5.5% per year for 42 months, the interest can be calculated as follows:
Step 1: Convert the annual interest rate to a monthly rate by dividing by 12.
5.5% ÷ 12 = 0.4583% per month
Step 2: Convert the loan period from months to years if necessary or use the amount in months directly.
42 months = 3.5 years
Step 3: Use the simple interest formula:
Interest = Principal x Rate x Time
$2065 x 5.5% x 3.5 = $397.23875
Step 4: To find the total amount to be repaid, add the interest to the principal:
Total amount = Principal + Interest
$2065 + $397.23875 = $2462.23875
The total amount of interest accrued on the $2065 loan at 5.5% per year over 42 months is $397.23875, making the total amount due $2462.23875.