Question

Belinda borrowed $20,500 at simple interest rate of 4.30% p.a. from her parents to start a business. At the end of 3 months, she paid them $7,100 and $6,900 at the end of 8 months. How much would she have to pay them at the end of 18 months to clear the balance?

Answer 1

interest for 3 months = 20500(.043)(1/4) = 220.375
amount owing at that time = 20720.375
after payment of 7100, amount owing = $13,620.375
interest on the next 5 months = 244.03
debt at the end of that time = $13,864.41
after the 6900 payment, balance at the end
of 8 months = $6,964.41

You finish it ....

find the interest for the next 10 months, add it on the last balance and you are done.

Answer 2

is the final answer $7,213.96?

Answer 3

correct