After some questionable activity during your college's annual homecoming party, your friends need to bail you out of jail. A bail bondsman loans your friends $5000 with the condition that they will repay the loan along with 15¼ % annual simple interest. After six months you go to pay the loan, how much will you owe? Give your answer as a decimal rounded to the nearest hundredth.
A) $5123.50
B) $5381.25
C) $8932.75
D) $9575.00
E) None of the above.

Question

Quizplus · Accepted Answer

The simple interest for six months is calculated as $5000 * 0.1525 * (6/12) = $381.25. Adding this to the principal amount of $5000 gives a total of $5381.25.

After Some Questionable Activity During Your College's Annual Homecoming Party