Question

Find the amount due if $200 is borrowed for 10 months at an APR of 16% simple interest

Amount =?

Answer 1

$266.66

Explanation:

We have here ,

• Principal = $200
• Rate = 16%
• Time = 10 months = 10/12 yrs.

We can use the formula of SI to calculate the SI . After adding it to principal we will get the amount .

⇒ SI = P × R × T / 100

⇒ SI = $ 200 × 16 × 10 / 12 × 100

⇒ SI = $ 26.66

Now Calculate amount as ,

⇒ A = SI + P

⇒ A = $ 200 + $ 26.66

⇒ A = $ 226.66