Question

The shoe store manager borrowed $17,000.00 from the bank to purchase 1000 pairs of shoes. The bank charges a simple interest rate of 5% per year on a loan to a business. If it takes 3 years to pay back the loan and interest, what is the total amount of interest that the shoe store will pay? (2 points)

The total amount that the shoe store will pay back to the bank is $2550. I know this because I used I=PRT which would then be 1700*0.05*3 which would then lead the interest to be $2550.


b) What is the total amount, including interest, that the shoe store must pay on the loan? (2 points)

The total amount will be $19,250. I know this because I did 17,000+2550 to get 19,250.


c) How could you use estimation to determine if your answer is reasonable? Explain. (2 points)

JUST ANSWER C! Thank you

Answer 1

c) How could you use estimation to determine if your answer is reasonable? Explain. (2 points)

Explanation:

Based on the calculation, the estimate was gotten by multiplying 15 by 17 to get $225 then multiply by 10 to get $2250 making it thousands of dollars. The total loan amount was made by adding the original amount borrowed with the interest charges by the bank.

(I'm doing a math paper/docs on it and this is what i put).

Answer 2

Explanation:

A) Using the formula for calculating simple interest. This is expressed as:

SI = PRT/100

P is the principal = 17,000

Rate = 5%

Time = 3years

SI = 17,000×5×3/100

SI = 170×5×3

SI = 170×15

SI = $2550

Hence the total amount that the shoe store will pay back to the bank is $2550.

B) To get the total amount plus loan to be paid, we will use the formula below;

Amount = Principal + Interest

Amount = $17000+$2550

Amount = $19550

Hence the total amount will be $19500

C Based on the calculation, the estimate was gotten by simply multiplying 15 by 17 to get $225 then multiply by 10 to get $2250 making it thousands of dollars.

The total loan amount was derived by simply adding the original amount borrowed with the interest charges by the bank