Question

Adam is purchasing a new television that costs $2,187.96 after tax. He borrowed the money from his parents and must pay back the full amount plus simple interest at the rate of 3.5%. What is the total amount he will pay if he takes 2 years to pay his parents back? (Include Decimal with the cents; No Commas)

Answer 1

It is determined that he will pay an interest of $153.16 using simple interest and taking the exercise's specified criteria into account.
Basic Interest
When there is only one compounding every time period, simple interest is applied.
The formula for calculating interest after t years is 1 = Prt.
Where P is the initial sum and r is the interest rate in decimal form.
The following are the parameters for this problem:
P = 2187.96, r = 0.035, t = 2.
The interest will therefore be paid at the rate of 1=Prt = 2187.96 x 0.035 2 = $153.16.

Answer 2

He will pay 2264.54 with 3.5% interest