Asked by Selestiah ari
Larry borrows $1300 at 5% simple interest per month. When
Larry pays the loan back 3 years later, what is the total amount that Larry ends up repaying?
1300x0.05x3=195
Larry pays the loan back 3 years later, what is the total amount that Larry ends up repaying?
1300x0.05x3=195
Answers
Answered by
oobleck
Nope. Read the question carefully. It's 5% per month, not per year.
In the formula i = Prt
t is the number of interest periods.
also, you calculated only the interest. Larrya has to pay the interest plus the original principal.
A = P(1 + rt)
In the formula i = Prt
t is the number of interest periods.
also, you calculated only the interest. Larrya has to pay the interest plus the original principal.
A = P(1 + rt)
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