Carl borroowed $2,500 for six months at an annual interest rate

Question

of 11%. How much must he repay at the end of six months?

Answer 1

To calculate the total amount Carl must repay at the end of six months, we first need to calculate the interest he will owe.

Interest = Principal x Rate x Time
Interest = $2,500 x 0.11 x (6/12)
Interest = $2,500 x 0.11 x 0.5
Interest = $2,500 x 0.055
Interest = $137.50

The total amount Carl must repay at the end of six months is the principal amount borrowed plus the interest:
Total Repayment = Principal + Interest
Total Repayment = $2,500 + $137.50
Total Repayment = $2,637.50

Therefore, Carl must repay a total of $2,637.50 at the end of six months.