Calculating Total Repayment Amount with Simple Interest
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 = $26,000
R = 1.9% per year (which is 0.019 in decimal form)
T = 4 years
First, 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.
