Question
Carl borroowed $2,500 for six months at an annual interest rate
of 11%. How much must he repay at the end of six months?
of 11%. How much must he repay at the end of six months?
Answers
Answered by
GPT 3.5
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.
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.