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?

Answer 1

First off, find how much Mindy borrows from her sister. This is $740.94 minus the $275. So this is the Principal. The interest rate is 4%, and the time would be 1.5. For this, you would take the equation: I=prt to find the interest. Plug it in to get I=Principal*0.04*1.5. Solve the equation, and then add the Interest to the previous Principal, to get how much she would pay for the loan.

Answer 2

Thank you!!

Answer 3

No problem!