Question

If $520 is borrowed for 290 days at 2.15% simple annual interest, how much will be repaid at the end of 290

days?

Answer 1

Explanation:

Formula for simple interest

`a = p(1 + rt)`

where a = final amount

p = principal amount

r = annual interest rate

t = time in years

given p = 520,

r = 2.15/100

t = 290/365 (1 year = 365 days)

`a = 520(1 + ( (2.15)/(100) )( (290)/(365) )) \\ = 520 (1 + (1247)/(73000) ) \\ = 520( (74247)/(73000) ) \\ = 528.88 \: (2.dp)`