Use the appropriate formula to solve the problem.
-Levi borrowed $3859 at 14% simple interest for 4 months. How much will the interest amount to? What is the total amount that Levi will have to pay back at the end of 4 months? Round answers to the nearest cent if
Necessary.
A) $135.07; $3994.07
B) $180.09; $4039.09
C) $225.11; $4084.11
D) $181.60; $4040.60

Question

Quizplus · Accepted Answer

The simple interest formula is I = PRT, where P is the principal ($3859), R is the rate (14% or 0.14), and T is the time in years (4/12). Calculating gives I = $180.09. The total amount is the principal plus interest, $3859 + $180.09 = $4039.09.

Use the Appropriate Formula to Solve the Problem