Question

Jacqueline took out a personal line of credit in her senior year of college with an annual simple interest rate of 4%.she takes 51 months to pay off the loan in full and pays 1530 in interest. A. How much was the original line of credit amount.B. How much did Jacqueline pay in total.

Answer 1

Given data:

The given annual interest is r=4%.

The given time is t=51 months= 4 year+3 months=4.25 years.

The interest ammount is i=1530.

A)

The expression for the simple innterest is,

i=(Prt)/100

Substitute the given values in the above expression.

1530=P(4)(4.25)/100

P=9000.

Thus, the original amount credit is 9000.

B)

The expression for the total amount is,

A=P+i

Substitute the above calculated values.

A=9000+1530

=10530

Thus, the total amount is 10530.