Question

Zach borrowed $3500 from the Math Club to build a new deck. The math Club will be charging him a four percent simple interest per week. How much will Zach need to pay back in exactly five months?

Answer 1

$6,300

Explanation:

In order to calculate this, we need to use the simple interest formula below.

A = P(1 + rt)

where:

A = final amount to be paid

P = initial amount borrowed

r = interest rate for a given time period

t = amount of time periods

Now we can simply plug in the values given to us in the question and solve for A

The percentage needs to be in decimal form so it will be 0.04. There are 4 weeks in a month and we need to calculate the total after 5 months which will be equal to 20 weeks (4 * 5)

A = P(1 + rt)

A = 3500(1 + (0.04 * 20))

A = 3500(1 + 0.8)

A = 3500 * 1.8

A = $6,300