Solve for y.
-Hannah borrowed $47,838 at 5% simple interest for 15 months. How much will the interest amount to? What is the total amount that she will have to pay back at the end of 15 months? Round answers to the nearest cent if
Necessary.
A) $2790.55; $50,628.55
B) $3189.20; $51,027.20
C) $2989.88; $50,827.88
D) $3015.00; $50,853.00

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula I = PRT, where P is the principal amount ($47,838), R is the rate of interest per year (5% or 0.05), and T is the time in years (15 months or 1.25 years). Thus, I = $47,838 * 0.05 * 1.25 = $2,989.88. The total amount to be paid back is the principal plus interest, which is $47,838 + $2,989.88 = $50,827.88.

Solve for Y. -Hannah Borrowed $47,838 at 5% Simple Interest for 15 Months