Question

How much will Robert pay Steve at the end of 163 days?

Answer 1

For the transaction given, we shall apply a simple interest formula which is;

`I=P* R* T`

Note however that the time in this instance is not up to 1 year but a fraction of 1 year, that is;

`T=(163)/(365)`

Therefore, the interest shall be calculated as follows;

`\begin{gathered} I=P* R* T \\ P=10280, \\ R=0.1\text{ (that is 10\% expressed as a decimal)} \\ T=(163)/(365) \\ I=10280*0.1*(163)/(365) \\ I=459.07945 \\ I=459.10\text{ (rounded to the nearest cent)} \end{gathered}`

The amount to be repaid after 163 days would be the principal plus the interest and that would be;

`\begin{gathered} \text{Amount}=P+I \\ \text{Amount}=10280+459.10 \\ \text{Amount}=10739.10 \end{gathered}`

ANSWER:

Amount to be repaid is $10,739.10