Question

Carol loaned Mario $650 $ ⁢ 650 at an interest rate of 13% 13 % for 221 221 days. How much will Mario pay Carol at the end of 221 221 days? Round your answer to the nearest cent. Note: Assume 365 365 days in a year and 30 30 days in a month.

Answer 1

Mario will pay Carol a total of $701.36 at the end of 221 days for a loan of $650 at an annual interest rate of 13%.

Step-by-step explanation:

The student has asked how much Mario will pay Carol at the end of 221 days for a loan of $650 at an interest rate of 13% per annum. To solve this, we need to calculate the simple interest for the period and add it to the principal amount.

First, we calculate the simple interest using the formula:

Interest (I) = Principal (P) × Rate (R) × Time (T)

Since the time is given in days, we convert the time to years:

T = 221 days / 365 days/year = 0.6055 years (approximately)

Then,

I = $650 × 13% × 0.6055 = $650 × 0.13 × 0.6055 = $51.36

The total amount Mario will pay Carol at the end of 221 days is the sum of the principal and the interest:

Total Amount = Principal + Interest

Total Amount = $650 + $51.36 = $701.36

Therefore, Mario will pay Carol $701.36 at the end of 221 days, rounded to the nearest cent.