Question

A family charges a trip to the zoo on a credit card. The simple interest rate is 12%. The charges are paid after 3 months. What is the total amount paid for the trip? Round your answer to the nearest hundredth.

Answer 1

$180.806

Explanation:

The computation of the total amount paid for the trip is shown below;

As we know that

Simple interest = Principal × rate of interest × time period

= (67.70 + 62.34 + 45.50) × 12% × 3 months ÷ 12 months

= 5.2662

Now the amount is

= Principal + simple interest

= 175.54 + 5.2662

= $180.806