Question

Dan borrow s money to buy a new trumpet $400 at a simple interest rate of 5% he writes the equation t=400 +(0.5×400) to represents the amount of money he will need to pay back after one year is Dan equation correct

Answer 1

Dan's equation is wrong.

Explanation:

Given, Dan borrows money to buy a new trumpet $400 at simple interest rate of 5% .

`{\textrm {simple interest} = (P * r * t)/(100)` here P =$400, r = 5% and t = 1

`=\$(400 * 5 * 1)/(100)`

`=\$(0.05* 400)`

Therefore he will need to pay back after one year is = 400+(0.05×400)

So, t = 400+(0.05×400)

Dan's equation is wrong.