Allan borrowed $4800 from his father to buy a car. He repaid him after 9 months with interest of 5% per year. Find the total amount he repaid.
I think the answer is $5040.00
How did you get that answer?
thank you!
You're welcome.
To find the total amount Allan repaid, you need to calculate the principal amount borrowed plus the interest charged over the 9-month period.
First, let's calculate the interest charged. The interest rate is 5% per year, which means it is applied annually. Since the loan term is 9 months, which is less than a year, we need to adjust the interest rate accordingly.
To calculate the interest charged over 9 months, divide the annual interest rate by 12 months and multiply it by the loan amount:
Interest = (Annual Interest Rate / 12) * Loan Amount
In this case, the loan amount is $4800, and the annual interest rate is 5%:
Interest = (5% / 12) * $4800
Next, multiply the interest by the loan term (9 months) to find the total interest charged:
Total Interest = Interest * Loan Term
Total Interest = (5% / 12) * $4800 * 9
Now, add the total interest charged to the loan amount to find the total amount repaid:
Total Repayment = Loan Amount + Total Interest
Total Repayment = $4800 + [(5% / 12) * $4800 * 9]
Calculating this expression will give you the final amount that Allan repaid to his father.
4800/9=533.33x5%=266.665
4800+240=5040.00
Thanks.
The correct way is to use this formula.
Interest = principal * rate * time
I = 4800 * 0.05 * 0.75
I = 180
4800 + 180 = 4980