Question

Animal Instinct a pet supply shop borrows $7100 a 5 1/2% for 60 days Find (a) the amount of interest due and (b) the total amount that must be paid after 60 days (a) The interest due for 60 days is s (Simplify your answer Round to the nearest cent as needed) Enter your answer the answer banner Check An 1 Type here to searc

Answer 1

We know that

• The principal is $7,100.

,

• The interest rate is 5.5%.

,

• The time is 60 days.

We have to use the simple interest formula

`\begin{gathered} I=P* r* t=7,100*0.055*(60)/(365) \\ I\approx64.20 \end{gathered}`

(a) The amount of interest would be $64.20.

(b) The total amount that must be paid after 60 days is $7,164.20.

Because it's the sum of the principal plus the interest.