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

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=412 years

Step 5 :Interest I=Prt

Step 6 :Interest I=$63000.02412

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 :6342.00

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