Roper Fox took out a simple interest loan at 5% interest for 12 months. His previous balance is $200. What is his final payment if the loan is paid off with the next payment?
i multiplies 200*5%*12 and got 210 but the answers are only 200 and some cents im really confused and help would be greatly appreciated

Question

Roper Fox took out a simple interest loan at 5% interest for 12 months. His previous balance is $200. What is his final payment if the loan is paid off with the next payment?
i multiplies 200*5%*12 and got 210 but the answers are only 200 and some cents im really confused and help would be greatly appreciated

jim_thompson5910 · Answer

Use the formula

I = P*r*t

to calculate the interest. In this case, P = 200, r = 0.05, t = 1/12

jim_thompson5910 · Answer

then you add that result on to $200

dtan5457 · Answer

Yes ^

how i looked at this was finding the interest total in 1 year which is $10. since he is paying it off at the next payment(in one month)

divide 10 by 12 for the interest in one month

add that $200 as that was the base starting price

anonymous · Answer

oh my gosh thank you so much i just was so lost

dtan5457 · Answer

anymore questions?

anonymous · Answer

no im just trying to take this online math class and im passing but im not understanding some of it and it upsets me i hate just getting an answer i have to know why

dtan5457 · Answer

oh. that's good, i hate moving on until i finally solve the problem too.

dtan5457 · Answer

you understand why the answer for this question is what it is right?

anonymous · Answer

i do alot better then i was thank you