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.
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.
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