Question

MEDAL GIVEN
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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?

Answer 1

@Mertsj

Answer 2

How much did she borrow?

Answer 3

@Mertsj 465.94

Answer 4

How did you get that?

Answer 5

@Mertsj 740.94 minus 275

Answer 6

Good job.

Answer 7

Now calculate the interest using the formula:
Interest = principal (rate)(time)
The principal is 465.94, the rate is .04 and the time is 1.5

Answer 8

interest = 465.94 • .04 • 1.5

27.9564 ?

Answer 9

Since we are talking about money, don't you think you should round that to the nearest cent?

Answer 10

27.95

Answer 11

I thought if the next number is 5 or greater, you round up???

Answer 12

so 28