Question

Nigel borrows $250 and pays 5.5% simple interest each year. if he pays back the money in one year, what is the total amount that he pay? Write equation and solve.

Answer 1

Answer: $263.75

Step-by-step explanation:

5.5= 0.055

250x.055=263.75

Answer 2

Answer:

$263.75

Step-by-step explanation:

You can calculate the interest using the formula I = C x i x t

I: interest to pay

C: initial capital

i: interest rate (annual)

t: time (in this case, number of years)

I = $250 * 5.5% * 1 = $13.75 of interest + $250 = $263.75

Nigel will be paying $263.75