Question - Calculating Total Repayment Amount with Simple Interest
mathinterest rate calculationsimple interest calculationtotal repayment amountborrowed amount calculation
Solution:
The question in the image is about calculating the amount of money a woman must repay after 4 years, having borrowed $26,000 at a simple interest rate of 1.9%. Simple interest can be calculated using the formula:\[ \text{Simple Interest (SI)} = \text{Principal (P)} \times \text{Rate (R)} \times \text{Time (T)} \]Where:P is the principal amount (the initial amount borrowed)R is the rate of interest per period (in decimal form)T is the time the money is borrowed for Given:P = $26,000R = 1.9% per year (which is 0.019 in decimal form)T = 4 yearsFirst, calculate the interest (I):\[ I = P \times R \times T \]\[ I = 26000 \times 0.019 \times 4 \]\[ I = 1972 \]She will accumulate $1,972 in interest over 4 years.To find the total amount she must repay, you add the interest to the principal:\[ \text{Total Amount} = \text{Principal} + \text{Interest} \]\[ \text{Total Amount} = 26000 + 1972 \]\[ \text{Total Amount} = 27972 \]So, the woman must repay a total of $27,972 after 4 years.
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