Enrico Montoyo wants to borrow $350 for 6 months from his credit union, using his savings account as security. The credit union's policy is that the maximum amount a person can borrow is 80% of the amount in the person's savings account. The interest rate is 2 percentage point higher than the interest rate being paid on the savings account. The current rate on the savings account is 3.25%. a) How much money must Enrico have in his account to borrow $350? b) What is the rate of interest the credit union will charge for the loan? c) Find the amount Enrico must repay in 6 months?

Question

Enrico Montoyo wants to borrow $350 for 6 months from his credit union, using his savings account as security.  The credit union's policy is that the maximum amount a person can borrow is 80% of the amount in the person's savings account.  The interest rate is 2 percentage point higher than the interest rate being paid on the savings account.  The current rate on the savings account is 3.25%. a)  How much money must Enrico have in his account to borrow $350? b)  What is the rate of interest the credit union will charge for the loan? c)  Find the amount Enrico must repay in 6 months?

perl · Answer

I would like to help. Do you have a website or book i can look at the formula ?

juana02 · Answer

no this is the problem but i dont know the formula if there is can u help me how to solve this word problem?