Question

Edward borrows $350 and pays 3.5% simple intrest each year.

If he pays back the money in 1 year, what is the total amount he pays?

Answer 1

@Directrix

Answer 2

@Preetha

Answer 3

Interest = P*R*T where p is the principal, r is the interest rate, and t is the time

Ed will owe

350 + .035*350 at the end of the year.

He owes $ 362.65

Answer 4

Interest =P*r*t where Pis the principal, r is the interest rate per term and t is the number of terms
I=P*r*t P=$350 r=3.5*100=0.35p.a t=1 year
I=350*0.35*1
=122.50
The amount of interest he would pay is $122.50. however since it is asking for the total amount that you are looking for there is another step that needs to be done.
A=P+I where A is the total amount due at the end of the investment
P is the principal the amount of money invested
I is the simple interest earned
A=P+I P=$350 I=$122.50
A= 350+122.50
A=$472.50
He would owe $472.50. I could be wrong about that last step it could be just the interest. I hope this helps you.

Answer 5

@renni3

3.5% = .035 as a decimal, not 0.35 .

I think that is why our answers differ.

Answer 6

oops I think you are right there. sorry

Answer 7

Thank you @renni3 & @Directrix so much!!!!!