To find the total amount required to repay the loan, we need to calculate the interest on the loan first.
The formula for simple interest is: Interest = Principal * Rate * Time
In this case, the principal is $5800, the rate is 7% (or 0.07), and the time is 10 months.
Thus, Interest = $5800 * 0.07 * 10 = $4060
The total amount required to repay the loan is the sum of the principal and the interest.
Total amount = Principal + Interest = $5800 + $4060 = $9860
Therefore, the total amount required to repay the loan is $9860.
Question content area top
Part 1
Tony opened a hot dog stand last April. He borrowed $5800 to pay for the stand and startup inventory, and he agreed to pay off the loan in 10 months at 7% simple interest. Find the total amount required to repay the loan.
1 answer