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Jen loaned Robert $7700 at an interest rate of 14 % for 5 years. How much will Robert pay Jen at the end of 5 years? Round your answer to the nearest cent, ifnecessary.

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Final answer:

Robert will pay Jen a total of $13090 at the end of 5 years, which includes the principal of $7700 and the interest of $5390 calculated using the simple interest formula.

Step-by-step explanation:

To calculate how much Robert will pay Jen at the end of 5 years for a loan amount of $7700 at an interest rate of 14%, we use the formula for calculating simple interest, which is Interest = Principal × rate × time.

In this case, the principal is $7700, the rate is 14% or 0.14 when expressed as a decimal, and the time is 5 years.

The interest Robert will owe at the end of 5 years is calculated as:

Interest = $7700 × 0.14 × 5

Interest = $5390

To find out the total amount Robert will pay Jen, we need to add the interest to the principal:

Total Amount = Principal + Interest

Total Amount = $7700 + $5390

Total Amount = $13090

Therefore, Robert will pay Jen a total of $13090 at the end of 5 years.

User Nitesh Borad
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We need to find the amount A Robert will pay Jen after she landed the principal P = $7700 him at a rate r = 14% after t = 5 years.

The formula to find A in terms of P, r, and t, for an annually compounded interest is:


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User Balraj
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4.7k points