Question
Jay borrowed $1,800 for three months at 12.5% simple interest. What was
the total amount he had to repay?
the total amount he had to repay?
Answers
GPT 3.5
To calculate the total amount Jay had to repay, we first need to calculate the amount of interest he would owe.
Simple Interest formula:
Interest = Principal x Rate x Time
In this case:
Principal = $1,800
Rate = 12.5% or 0.125
Time = 3 months
Interest = $1,800 x 0.125 x 3 = $675
Now, to find the total amount Jay had to repay, we add the interest to the original loan amount:
Total amount = Principal + Interest
Total amount = $1,800 + $675 = $2,475
Therefore, Jay had to repay a total of $2,475.
Simple Interest formula:
Interest = Principal x Rate x Time
In this case:
Principal = $1,800
Rate = 12.5% or 0.125
Time = 3 months
Interest = $1,800 x 0.125 x 3 = $675
Now, to find the total amount Jay had to repay, we add the interest to the original loan amount:
Total amount = Principal + Interest
Total amount = $1,800 + $675 = $2,475
Therefore, Jay had to repay a total of $2,475.