Use the formula A = P(1 + rt) to find the indicated quantity.
-Allan borrowed $5500 from his father to buy a car. He repaid him after 10 months with interest of 5% per year. Find the total amount he repaid.
A) $229.17
B) $5775.00
C) $5706.25
D) $5729.17

Question

Quizplus · Accepted Answer

P = $5500 (principal amount borrowed)
r = 5% per year (interest rate, expressed as a decimal)
t = 10/12 years (10 months is 10/12 of a year)
A = P(1 + rt) = $5500(1 + 0.05(10/12)) = $5729.17
Therefore, the total amount Allan repaid is $5729.17. P = 5500 (amount borrowed)
r = 0.05 (interest rate per year)
t = 10/12 = 0.83 (time in years)

A = P(1 + rt)
A = 5500(1 + 0.05*0.83)
A = 5729.17

Therefore, Allan repaid a total amount of $5729.17, which is option D.

Use the Formula a = P(1 + Rt) to Find