Mindy has been waiting for a particular computer to go on sale, and she has already saved $275. After sales tax, the price of the computer is $740.94. Mindy borrows the remaining amount from her older sister at a simple interest rate of 4% per year and agrees to pay the entire loan back all at once at the end of 1.5 years. How much will Mindy have to pay her sister for the loan, including interest?

Question

Mindy has been waiting for a particular computer to go on sale, and she has already saved $275. After sales tax, the price of the computer is $740.94. Mindy borrows the remaining amount from her older sister at a simple interest rate of 4% per year and agrees to pay the entire loan back all at once at the end of 1.5 years.  How much will Mindy have to pay her sister for the loan, including interest?