Question

Match the following equation to the correct situation.

A + A(7%) = A(1.07)
A.
the amount Tonya owes after putting 7% down on an A home

B.
the amount Jess owes Julie from borrowing A with 7% interest

C.
the amount Ryan paid for two shirts, one was full price for A, the other was discounted 7%

D.
the amount donated by a company which gives 7% of A dollars collected at a charity banquet

Answer 1

B

A + A(7%) = A + 0.07A = 1.07A represents the original amount A plus 7% interest — the total Jess would owe after borrowing A at 7% (for one period/simple interest).