Answer to Question #184593 in Financial Math for Claire

Question

A student borrows $4000 at 15% for 9 months to pay tuition. Find the total amount due using simple interest.

Answer 1

$A=P(1+rt)$

$p=\$4000$

$r=15\%$

$t=0.75 years$

$\therefore A=4000[1+(0.15\times0.75)]$

$A=4000\times1.1125$

$A=\$4,450$