Tony opened a hot dog stand last April. He borrowed ​$ to pay for the stand and startup​ inventory, and he agreed to pay off the loan in months at ​% simple interest. Find the total amount required to repay the loan.

Answer 1

To find the total amount required to repay the loan, we need to calculate the interest on the loan.

First, we need to determine the interest amount.
The formula for simple interest is:
Interest = (Principal * Rate * Time) / 100

Here, the Principal is the borrowed amount, Rate is the interest rate, and Time is the loan duration in months.

Let's assume the borrowed amount is $P, the interest rate is R%, and the loan duration is T months.

Therefore, the interest amount can be calculated as:
Interest = (P * R * T) / 100

The total amount required to repay the loan is the sum of the Principal and the Interest:
Total Amount = Principal + Interest

Substituting the values back into the formulas gives:
Total Amount = P + (P * R * T) / 100

Therefore, the total amount required to repay the loan is $P + ($P * R * T) / 100.