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Zorluk: OrtaSimple Interest Applications

A logistics specialist takes out a short-term loan of $3,500\$3,500 to cover moving expenses. The loan agreement specifies an annual simple interest rate of 6%6\%. If the specialist pays off the entire loan in exactly 88 months, what is the total amount repaid?

  1. $3,640\$3,640Cevap
  2. B
    $3,710\$3,710
  3. C
    $4,900\$4,900
  4. D
    $5,180\$5,180

Cevap

The total amount repaid is $3,640\$3,640.
The correct answer accurately calculates the interest for an 8-month period by converting 8 months to 2/3 of a year. Multiplying the principal ($3,500\$3,500) by the rate (0.060.06) and the time (2/32/3) yields $140\$140 in interest. Adding this to the original principal gives the final repayment amount of $3,640\$3,640.

Adım Adım Çözüm

1
Identify the given variables and convert the time period into years.
Principal (PP) = $3,500\$3,500, Rate (RR) = 6%6\% or 0.060.06, Time (TT) = 88 months = 812\frac{8}{12} or 23\frac{2}{3} years.
Simple interest formulas require the time variable to be expressed in years when dealing with an annual interest rate.
2
Calculate the simple interest using the formula I=P×R×TI = P \times R \times T.
I=3500×0.06×23=210×23=140I = 3500 \times 0.06 \times \frac{2}{3} = 210 \times \frac{2}{3} = 140. The interest earned is $140\$140.
This determines the exact cost of borrowing the money for the specified fraction of a year.
3
Add the calculated interest to the original principal to find the total amount to be repaid.
Total Amount (AA) = 3500+140=36403500 + 140 = 3640.
The total repayment must include both the borrowed amount (principal) and the accumulated interest.

Anahtar Kavram

Calculating Total Repayment with Fractional Year Simple Interest
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Konular

Simple Interest Applications

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