Question

If you borrow $650 at 31% simple interest for 4 months, how much do you have to repay?

Answer 1

$714.08

Explanation:

Interest = P*R*T

I = Interest

P = Principal amount (the initial amount borrowed or invested)

R = Rate of interest per period (as a decimal)

T = Time period (in years)

R = 31% (as a decimal, this is 0.31)

T = 4 months (convert to years by dividing by 12, so T = 4/12 = 1/3 years)

Now, plug these values into the formula:

I = $650 * 0.31 * (1/3)

I = $650 * 0.31 * 0.3333...

I ≈ $64.08 (rounded to two decimal places)

So, the interest you'll have to repay is approximately $64.08. To find the total amount you have to repay, add this interest to the principal amount:

Total Repayment = Principal + Interest

Total Repayment = $650 + $64.08

Total Repayment ≈ $714.08