Question

Stacy loaned Robert $21,370 at an interest rate of 10 % for 171 days. How much will Robert pay Stacy at the end of 171 days? Roundyour answer to the nearest cent. Note: Assume 365 days in a year and 30 days in a month.

Answer 1

The simple interest formula is :

`A=P(1+rt)`

where A is the future amount

P is the principal amount

r is the rate of interest

and

t is the time in years

From the problem, we have :

P = $21,370

r = 10% or 0.10

t = 171 days or 171/365 year

Using the formula above :

`\begin{gathered} A=21370(1+0.10*(171)/(365)) \\ A=22371.17 \end{gathered}`

The answer is $22,371.17