Question

Carmela borrows $400 and will pay 5.25% yearly simple interest. How much

more interest will Carmela owe if she borrows the money for 4 years instead.
of 2 years? Show your work.

Answer 1

Answer:she has to pay 42 dollars more

Step-by-step explanation

Answer 2

Camels has to pay $42 more as interest

Explanation:

We are given that Carmela borrows $400 and will pay 5.25% yearly simple interest.

Principal = $400

Rate of interest = 5.25%

Time = 2 years

Formula :
`SI = (P * T * R)/(100)`

So,
`SI =(400 * 2 * 5.25)/(100)`

SI=42

She borrows the money for 4 years instead of 2 years,

So,
`SI =(400 * 4 * 5.25)/(100)`

SI=84

Difference in interests = 84-42 = 42

Hence Camels has to pay $42 more as interest