Question

Need a clear answer ASAP please

If $1205 is borrowed for 11 years at an annual simple insterest rate of 11.3%, what is the total amount that must be repaid rounded to the nearest cent?

Answer 1

If the interest is yearly $2702.87 will be owed

Explanation:

first you would need to find out how much 11.3% of $1205 is which is $136.17. And since the interest is yearly you would multiply the $136.17 by the 11 years which would be $1497.87. Then you would add the amount that they borrowed to the interest that they would owe after 11 years which would be $1497.87 + $1205 = $2702.87. So after 11 years the total amount that must be repaid is $2702.87