Question

the local pet store bought 6 new aviary environment bird cages at a cost of $840. The owner borrowed 90% of the cost of the cages at an interest rate of 9.5%. Find the total amount owed at the end of 2 5/6 yrs using simple interest.

Answer 1

Answer: Total amount owed at the end of $2\frac{5}{6}=\frac{17}{6}\ years$ will be $959.49.

Step-by-step explanation:

Since we have given that

Number of new aviary environment bird cages = 6

Cost of bird cages = $840

As we have given that 90% of the cost of the cages at an interest rate of 9.5%.

i.e.

$\frac{90}{100}\times 840\\\\=\ 756$

So, after $2\frac{5}{6}=\frac{17}{6}\ years$ , the total amount will be

$I=\frac{P\times R\times T}{100}\\\\I=\frac{756\times 9.5\times \17}{6\times 100}=\ 203.49$

Now, we know that

$Amount=Principal+interest\\\\Amount=756+203.49\\\\Amount=\ 959.49$

Hence, total amount owed at the end of $2\frac{5}{6}=\frac{17}{6}\ years$ will be $959.49.