Question

A man took out a $44,000 construction loan to remodel a house. The loan rate is 8.5% simple interest per year to be repaid in three months. How much is paid back?​

Answer 1

9514 1404 393

Answer:

$44,935

Explanation:

The amount due will be ...

A = P(1 +rt) . . . . principal P at annual rate r for t years

__

3 months is 3/12 = 1/4 years, so the amount is ...

A = $44,000(1 +0.085×1/4) = $44,935 . . . amount paid back