Problem

Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent.

Allan borrowed $\$ 6300$ from his father to buy a car. He repaid him after 4 months with interest of $2 \%$ per year. Find the total amount he repaid.

Answer

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Answer

\( \boxed{6342.00} \)

Steps

Step 1 :Calculate the simple interest for 4 months at a rate of 2% per year on a principal amount of $6300

Step 2 :Principal \( P = \$6300 \)

Step 3 :Rate \( r = 0.02 \) per year

Step 4 :Time \( t = \frac{4}{12} \) years

Step 5 :Interest \( I = P \cdot r \cdot t \)

Step 6 :Interest \( I = \$6300 \cdot 0.02 \cdot \frac{4}{12} \)

Step 7 :Interest \( I = \$42.00 \)

Step 8 :Total repayment \( = P + I \)

Step 9 :Total repayment \( = \$6300 + \$42.00 \)

Step 10 :Total repayment \( = \$6342.00 \)

Step 11 :\( \boxed{6342.00} \)

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