Example Question - simple interest calculation
Here are examples of questions we've helped users solve.
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.
Calculating Simple Interest and Total Repayment Amount
The question involves calculating the simple interest and then determining the total amount of money that the woman has to repay after 4 years. The formula for calculating simple interest is: \( I = P \times r \times t \) where \( I \) is the interest, \( P \) is the principal amount (initial loan amount), \( r \) is the annual interest rate (in decimal form), \( t \) is the time the money is borrowed for, in years. According to the image, the woman borrows $26,000, the interest rate is 3.9%, and the time is 4 years. First, convert the interest rate from a percentage to a decimal by dividing by 100: \( r = 3.9\% = \frac{3.9}{100} = 0.039 \) Now plug the numbers into the formula: \( I = P \times r \times t \) \( I = 26000 \times 0.039 \times 4 \) Now calculate the interest: \( I = 26000 \times 0.039 \times 4 \\ I = 1016 \times 4 \\ I = 4064 \) The interest that will be accrued over 4 years is $4,064. Next, to find the total amount that must be repaid, add the interest to the principal amount: \( Total = P + I \) \( Total = 26000 + 4064 \) \( Total = 30064 \) The woman will have to repay a total of $30,064 after 4 years.
Calculating Simple Interest
To calculate the simple interest, you can use the formula: \( \text{Interest} = P \times \frac{r}{100} \times \frac{t}{12} \) where: - P is the principal amount (initial amount of money) - r is the annual interest rate (as a percentage) - t is the time the money is invested for, in months Given in the image: - P = $1300 - r = \(4 \frac{1}{2}\) % = 4.5% - t = 3 months Plugging these values into the formula gives us: \( \text{Interest} = 1300 \times \frac{4.5}{100} \times \frac{3}{12} \) \( \text{Interest} = 1300 \times 0.045 \times 0.25 \) \( \text{Interest} = 58.5 \times 0.25 \) \( \text{Interest} = 14.625 \) Rounded to the nearest cent, the interest is $14.63.
Calculating Simple Interest for a Loan
To determine the simple interest, you can use the formula: \[ \text{Interest} = P \times r \times t \] where: - \( P \) is the principal amount (the initial amount of money), - \( r \) is the daily interest rate (as a decimal), - \( t \) is the time the money is invested or borrowed for, in days. From your image: - \( P = $558 \), - \( r = 0.047\% \) per day, which as a decimal is \( 0.00047 \) (divide by 100 to convert percentage to decimal), - \( t = 3 \) months, and since we're assuming a 360-day year, each month has 30 days, so \( t = 3 \times 30 = 90 \) days. Thus, the simple interest \( I \) is calculated as follows: \[ I = 558 \times 0.00047 \times 90 \] \[ I = 23.5218 \] Now, rounding to the nearest cent gives us: \[ I \approx $23.52 \] The simple interest on $558 at 0.047% per day for 3 months is approximately $23.52.
CamTutor
In regards to math, we are professionals.
Get In Touch
Email: camtutor.ai@gmail.com