a) The simple interest Dr. Enriquez paid the bank can be calculated using the formula:
Interest = Principal x Rate x Time
In this case, the principal (P) is $6,370, the interest rate (R) is 7.25% per annum, and the time (T) is 6 months.
Converting the interest rate to a decimal: R = 7.25% / 100 = 0.0725
Converting the time to years: T = 6 months / 12 months = 0.5 years
Now we can calculate the interest:
Interest = $6,370 x 0.0725 x 0.5 = $183.62
Therefore, Dr. Enriquez paid $183.62 in simple interest to the bank.
b) The total amount of money repaid to the bank is calculated by adding the principal and the interest:
Total = Principal + Interest
Total = $6,370 + $183.62 = $6,553.62
Therefore, the total amount of money repaid to the bank is $6,553.62.
c) The amount of each monthly installment can be calculated by dividing the total amount repaid by the number of months:
Monthly Installment = Total Amount / Number of Months
In this case, we have 6 months, so
Monthly Installment = $6,553.62 / 6 = $1,092.27
Therefore, the amount of each monthly installment is $1,092.27.
2. Dr. Enriquez borrowed $6,370 from the National Bank of Belize at 7.25 per cent per annum simple interest for 6 months. Calculate:
a) The simple interest Dr. Enriquez paid the bank for the money she borrowed.
b) The total amount of money that was repaid to the bank.
c) The amount of each monthly installment.
1 answer
1 answer